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irert 


TABLE OF CONTENTS 


FOREWORD 

I.THE COLONIAL PERIOD 

Early British Restriction of Colonial Exports 
The New England Confederation 
The Navigation Acts 

Creation of the Board of Trade and Plantations 


PACE 

1 

11 

13 

13 

14 
16 


7 7 *> -Lcui UCLU J.U110 J.VJ 

Prohibition Laid by Parliament on the Exportation of Ricel8 
The Molasses Act ig 

The Stamp Act 20 

The Stamp Act Congress 21 

Revenue Measures Enacted by Parliament in 1767 and their 
effect 23 

The Boston Port Bill and other Coercive Legislation 33 

Restriction of Colonial Manufactures by the British 36 

Regulation of Commerce by the Colonies 38 

Import duties imposed by the Colonies 39 

Export duties imposed by the Colonies 33 

Colonial Bounties 36 

Colonial Tonnage Duties 41 

Colonial Port Regulations 43 

Summary of Colonial Regulations 45 


II.THE REVOLUTIONARY PERIOD 46 

The Continental Congress 46 

Non-importation Agreements Promulgated by Congress 46 

Coercive Measures of Parliament 48 

The Beginning of the Revolution 49 

Congress Adopts Further Non-intercourse Measures 49 

Prohibition of Trade with the Colonies Declared by 

Parliament 50 

The Adoption of the Declaration of Independence 51 


IIIIPERIOD OF THE CONFEDERATION 53 

Ratification of the Articles of Confederation 53 

Power of Congress to Regulate Interstate and Foreign 

Commerce, under the Articles of Confederation. 54 

The British Orders in Council of 1783 55 

Measures of Retaliation Adopted by the States 56 

The Regulation of Interstate Commerce under the Articles 
of Confederation 60 

The Treaty Power of Congress under the Articles of 

Confederation 64 

Attempts of Congress to secure additional powers under 

the Articles of Confederation, to regulate commerce 67 
Defects of the Articles of Confederation 73 


IV.EVENTS LEADING TO THE CONSTITUTION 

Early Complaints of Virginia, under the Confederation 
The Mount Vernon Commission 
The Annapolis Convention 

The Calling of the Constitutional Convention 


V.THE CONSTITUTION 

Meeting of The Constitutional Convention 
Plans of Government Proposed 

Deliberations of the Convention Concerning the 
Regulation of Commerce 

Adoption and Ratification of the Constitution 
CONCLUSION 


86 

86 

87 

89 

96 

V 






ANTECEDENTS OF THE COMMERCE CLAUSE 


Foreword 


To regulate Commerce with foreign Nations, and 
among the several states, and with the Indian 
Tribes." 

In these words, the pe.ople of the United States gave to 
the Congress what today is, perhaps, the most important of its 
peace-time powers, that of regulating interstate and foreign 
commerce. This brief epitome of delegated power, contained 
in Article I, section 8, clause 3, of the constitution, was 
agreed to in the Constitutional Convention without a dissenting 
voice, the original proposition being amplified by adding "and 
with the Indian tribes' 1 , the least important provision of the 
clause today. 

This unanimity of view was due, no doubt, to the conviction 
in the minds of its framers, that the real necessity for a con¬ 
stitution was caused by that serious deficiency in the Articles 
of Confederation which resulted from the failure of the States 
to agree upon a plan for the uniform regulation of commeroe by 
the Federal Government. They had observed that the thirteen 
independent sovereignties, each guided by its own particular 
interests and distrustful of the motives of its neighbors, had, 
at different times, enacted conflicting, and in some instances, 
burdensome regulations which were productive of jealousy and 
friction. They were cognizant of the fact that there was a 
settled aversion on the part of the state legislatures to the 
delegation of any definite measure of power to the Federal 
Government either for the regulation of commerce or the pro- 




2 


duction of necessary revenue. They understood as well as the 
States, that the Federal regulation of commerce carried with 
it the means of providing a revenue for the support of the 
Government. They realized that, in this situation, the future 
of the confederacy was faced with disaster in its foreign inter¬ 
course and^serious difficulty in its domestic affairs, unless 
some central regulating authority could be superimposed to the 
wills of the individual state legislatures. Accordingly, dis¬ 
regarding their individual state interests, t£ey acted in har¬ 
mony for the good of the United States as a whole. 

While the Commerce Clause was unanimously accepted by the 
Convention as a necessary part of the change from State to 
National control, the broad powers therein given to Congress were 
amplified and qualified by certain other clauses of the Consti¬ 
tution. The discussion of some of these provisions engendered 
bitter sectional feeling and in several instances nearly caused 
the dissolution of the Convention without the accomplishment of 
its purpose. Happily for constitutional government, certain 
compromises were agreed to by the contending factions, thus as¬ 
suring to posterity the benefit of that monumental instrument 
upon which our national policies have been laid. 

The power to regulate interstate and foreign commerce proba¬ 
bly would have comprehended the incidental power of laying 
duties, imposts and excises, but the members of the Convention, 
mindful of the difficulties experienced under the loosely worded 
Articles of Confederation, were determined that the delegation 
of powers to Congress should be so explicit as to warrant their 
being proof against circumvention by the States. So this power 
was affirmatively provided for in the second clause of Section 
8 of Article I. The power to tax involves the power to destroy. 
The States, suspicious of their neighbors under the Articles of 



3 


Confederation, were equally distrustful in the Convention, of 
what might be possible under the Constitution. The non-commer¬ 
cial states particularly apprehended that the numerically greater 
representation of the commercial states would result in legis¬ 
lation which might prove disadvantageous, perhaps disastrous, 
to them. These fears and suspicions coalesced in the adoption 
of those prohibitions upon the exercise by Congress of delegated 
powers, other than in a uniform manner as between the States. 

In so far as the regulation of commerce is concerned these re¬ 
strictions are contained in Sections 8 and 9 of Article I. 

It is quite remarkable that so important a clause as that 
for the regulation of commerce should have been expressed so 
briefly, and thus have left so much for future determination. 
Perhaps the members of the Convention, feeling that the means 
justified the end, were willing to leave the final meaning to 
posterity. Subsequent events indicate that they were not wholly 
aware of the full power conferred upon the Federal Government. 

The commerce clause represents an instance where a national 
power which was comparatively unimportant for the first eighty 
years of its existence, has, during the past sixty years* devel¬ 
oped to such an extent that it is now, perhaps, the most impor¬ 
tant and conspicuous power possessed by the Federal Government. 
The members of the Constitutional Convention could not foresee 
the construction which would be placed upon this important clause 
by the Supreme Court. While they deemed it essential to the 
safety of the Federal Union that the Congress should be granted 
full power over interstate and foreign commerce, there is no 
question but that any attempt to extend that power to include 
jurisdiction over commerce wholly within the States would have 
met speedy defeat at their hands. Yet, the decisions of the 
courts acting upon our modern transportation agencies, have, in 
recent yearg,been tending more and more to that result. 








4 


At the time of the adoption of the Constitution, practi¬ 
cally all commerce between the states was transported, in 
vessels and boats. * Horse-drawn vehicles alone were available 
for land transportation. In the years that have intervened 
since that time great strides have been made in the creation 
and development of transportation instrumentalities. Today 
much the greater proportion of the commerce between the States 
is moved by steam and electricity. The Consolidation of rail¬ 
road properties, year by year, has produced great systems of 
transportation. The result today is, that all the important 
railroad systems operate across state lines and are engaged in 
interstate commerce. These carriers are subject to the regu¬ 
lations of Congress, as well as those of the individual states 
through which their lines extend. In late decisions by the 
Interstate Commerce Commission, acting under the authority of 
laws passed by Congress, the states appear to be shorn of much 
of the power over intrastate commerce, which, from the time of 
the adoption of the Constitution down to present has been con¬ 
sidered reserved to them. 

In Houston & Texas Ry . v. United States. 234 U.S. 343, 
familiarly known as the "Shreveport Case" the Railroad Com¬ 
mission of Louisiana had complained to the Interstate Commerce 
Commission that, under Section 3 of the Interstate Commerce Act, 
the state-made rates from Dallas and other Texas points into 
East Texas being much lower for greater distances than the 
interstate rates into the same territory from Shreveport, La., 
were unduly preferential to Dallas and other Texas points of 
origin and their shippers and unjustly discriminatory to Shreve¬ 
port and its shippers. The Commission, after prescribing 
reasonable rates from Shreveport to East Texas, which were 
higher than the Texas rates complained of, held that under 
Section 3, the relation of rates extended an undue preference to 







5 


the Texas points of origin and affected an unlawful discrimi¬ 
nation against Shreveport, and ordered the railroads involved 
in the litigation to remove the discrimination. As the Com¬ 
mission had established "reasonable rates 0 from Shreveport, 
this could be accomplished only by increasing the Texas intra¬ 
state rates. The Railroad Commission of Texas resisted these 
increases, and after affirmation of the Commission’s decision 
by the Commerce Court, the cases were brought tc the Supreme 
Court. That tribunal sustained the opinion of the Commission, 
holding that while Congress did not possess power to regulate 
the internal commerce of a state, as such, under the Commerce 
Clause, it did possess power to foster and protect interstate 
commerce, although ih taking necessary measures so to do it 
might be necessary to control intrastate transactions of inter¬ 
state carriers. In American Express flo. v. Caldwell. 344 U.S. 
617, and Illinois Central R.R.Co . v. Public Utilities Commission . 
245 U.S. 493, the principle enunciated in Houston & Texas Ry . v. 
United States , supra , was reaffirmed. 

In the Transportation Act. 1930 .^among, other things, the 
substance of the so-called Shreveport Doctrine was enacted into 
law by Congress, and made a part of Section 132of the Interstate 
Commerce Act. Another section of the Transportation Act. 1930 .^- 
also made a part of the Interstate Commerce Act, as Section 
15-A,3provided substantially that the Interstate Commerce Com¬ 
mission, in the exercise of its power to prescribe just and 
reasonable rates, should initiate, modify, establish or adjust 
rates, which for the two years following March 1, 1930, should 
yield to the carriers of the country as a whole, or as a whole 

^ Act of Congress approved February 38,1930, 41 Stats. L.456. 

^ Act of Congress approved February 28,1920, 41 Stats. L.484. 

3 Act of Congress approved February 38,1930, 41 Stats. L.488. 












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in each of such rate groups as the Commission might designate, 
a return of 5^ per cent on the aggregate value of the railway 
property of sgrch carriers held for and used in the service 
of transportation. Upon petitions filed by substantially all 
railroads of the United States praying an increase in rates 
under Section 15-A of the Interstate Commerce Act, the Commis¬ 
sion instituted an investigation, and after formal hearing e 
established certain rate groups and authorized horizontal in¬ 
creases in interstate passenger fares, freight rates and certain 
other allied charges.1 

Upon applications filed by the interstate carriers, a con¬ 
siderable number of states declined to permit increases in 
state rates, fares and charges equivalent to the increases 
authorized interstate by the Commission, and issued orders to 
that effect. This refusal of state authorization varied in 
the different states. In some states it related to passenger 
fares, in others, to freight rates; in some states partial in¬ 
creases were authorized, in others all increases were denied. 
Thereupon, the carriers affected filed petitions with the Com¬ 
mission for relief under the provisions of section 13 of the 
Interstate Commerce Act. The Commission, applying the Shreve¬ 
port Doctrine, as enacted in Section 13 of the Act, to these 
cases in conjunction with its power under Section 15-A to fix 
reasonable rates calculated to yield a definite return, made 
prima facie findings of discrimination individually as to each 
state, and ordered the carriers to impose the interstate in- 


1 


Increased Rates, 1930, 58 I.C.C. 220 






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creases upon intrastate traffic*1 The carriers after securing 
injunctions in the Federal district courts against the enforce¬ 
ment of the individual state orders, put the increased rates 
into effect in such states upon basis of the orders of the Com¬ 
mission. 

In the Illinois Case. 59 I.C.C., 350, the state authorities 
contended that paragraph 4 of Section 13 of the Interstate Com¬ 
merce Act is merely a restatement of the effect of Section 3 of 
that act, as interpreted by the court in Houston & Texas Ry . v. 
United States, supra . The Commission dismissed this contention 
upon the ground that paragraph 4 of Section 13 is much broader 
than Section 3, in that it forbids and declares unlawful "any 
undue, unreasonable, or unjust discrimination against interstate 
or foreign commerce".^ The Commission construed this additional 
language as conferring upon it the power to remedy "every dis- 


In the matter of rates, fares and charges of the New York 
Central Railroad Co., and other railroad companies in 
the state of New York, 59 I.C.C., 330. 

In the matter of Intrastate Rates within the State of 
Illinois, 59 I.C.C., 350. 

In the matter of Intrastate Rates within the State of 
Illinois, 60 I.C.C., 92. 

Wisconsin Passenger Fares, 59 I.C.C., 391. 

Arkansas Rates and Fares, 59 I.C.C., 471. 

Minnesota Fares and Charges, 59 I.C.C., 503. 

Iowa Passenger Fares and Charges, 60 I.C.C., 55. 

Montana Rates and Fares, 60 I.C.C., 61. 

Indiana Rates, Fares and Charges, 60 I.iO.C., 337. 
Nebraska Rates, Fares and Charges, 60 I.C.C., 305. 

Ohio Rates, Fares and Charges, 60 I.C.C., 78. 

South Carolina Rates, Fares and Charges, 60 I.C.C., 390. 
Michigan Passenger Fares, 60 I.C.C., 245. 

In the matter of Intrastate Rates within the state of Texas, 
60 I.C.C., 421. 

Utah Rates, Fares and Charges, 60 I.C.C., 388. 

North Carolina Fares and Charges, 60 I.C.C., 362. 
Louisiana Rates, Fares and Charges, 60 I.C.C., 467. 
Georgia Rates, Fares and Charges, 60 I.C.C., 537. 

Florida Rates, Fares and Charges, 60 I.C.C., 551. 

Nevada Rates, Fares and Charges, 60 I.C.C., 633. 

^ Act of Congress, Approved February 38, 1920, 41 Stats. 

L. 484. 








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crimination growing out of the relation between intrastate and 
interstate commerce which injuriously affects the latter."-** 

The Commission in deciding the state cases, apparently 
regarded proof of the fact that the interstate rates from and 
to points in a state had been increased in accordance with its 
authorization, and the intrastate rates from and to points with- 
m the same state had not been similarly increased, sufficient 
to establish discrimination ag&inst interstate commerce." The 
findings of the Commission as to the entire body of intrastate 
rates in each state are based primarily upon representative 
comparisons indicative of theoretical discrimination between 
interstate and intrastate rates, rather than proof of actual 
discrimination, which would be requisite to invoke the Shreve¬ 
port Doctrine. 

The Commission, in these cases, has based its opinion upon 
the fact that Congress, under the Commerce Clause, may take any 
necessary steps to foster and protect interstate commerce; and 
if, in the performance of that duty it becomes necessary to 
guarantee to the instrumentalities of commerce a definite return 
on their fair value, any deviation from the mandate of Congress 
by state authorities creates an unjust discrimination against 
interstate commerce. It has never been seriously contended that 
Congress has any power over intrastate commerce, as such. More¬ 
over^ in so far as the Commission is concerned, intrastatemcom- 
merce is specifically exempted from its jurisdiction by Section 
1 of the Interstate Commerce Act.2 But here, it is argued, the 
exercise of the Federal power will be restrained to the point 
of rendering measures necessary for the protection of interstate 
commerce as a whole ineffectual, if the states are permitted to 
deny the insturmentalities of commerce rates which will yield 

1 In the matter of Intrastate Rates within the State of 

Illinois, 59 I.C.C., 350, 363. 

2 41 Stats. L. 474. 








9 


the return set by Congress. 

While there are, no doubt, many arguments which might be 
advanced, as to the extent of the pow^r of Congress over intra¬ 
state commerce, as such, and its application to these cases, 
the subject is discussed here, apart from its merits, solely 
for the purpose of indicating the consequences which may follow 
this construction of the law. It is safe, perhaps, to assume 
that congress has no power over intrastate rates which are wholly 
unrelated to interstate rates. The Commission appears committed 
to this view, for a paragraph similar to the following is in¬ 
serted in its findings in each of the state cases'. 

"These findings are without prejudice to the rights of the 
authorities of Montana, or of any other interested party, to 
apply in the proper manner for a modification of our findings 
and order as to any specific intrastate fare or charge on the 
ground that the latter is not related to the interstate fares 
and charges in such a way as to contravene the provisions of 
the Interstate gommerce Act."^- 

This being true, the question at issue is whether every 
intrastate rate, which is related to interstate commerce solely 
by virtue of the fact that it is made or published by a carrier 
engaged in interstate commerce, is subject to the power of Con¬ 
gress under the Commerce Clause. Upon this determination, rests 
the fate of the decisions of the Commission in the state cases. 

Under the orders of the Commission, enforced by Federal 
injunctions against the orders of state regulating bodies which 
declined to permit increases in state rates equivalent to those 
authorized interstate, the states are divested, substantially, 
of their regulatory power. .'In this situation, a shipper or 
locality seeking the removal of undue prejudice which exists 
against one state rate, to the undue preference and advantage 

1 Montana Rates and Fares, 60 I.C.C., 61, 66. 



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of another state rate, hag no remedy before the state forum, 
because any proper action taken by that body to remove the dis¬ 
crimination would involve a violation -of the injunction laid 

against its orders in the Federal court. In this manner the 

residual sovereignty of the state, declared expressly in its 
Constitution, and expressly reserved ”to the states respective¬ 
ly, or to the people” in the Constitution of the United States, 
and the administrative powers conferred upon its duly accredited 
regulatory bodies, by laws enacted in pursuance thereof, stand 
nullified. In these states, if the right of the state shipper 

or locality is preserved, the remedy must be sought before the 

Federal forum. On the other hand, the powers of regulatory 
bodies in those states which granted the application of the car¬ 
riers for increases in state rates equivalent to those■ authorized 
interstate, are preserved in full force and vigor, and may be 
exercised, provided that in so doing the resulting state rates, 
fares and charges do not create discrimination against inter¬ 
state commerce. 

Reference is made to the State Cases decided by the Inter¬ 
state Commerce Commission, under authority of recent amendments 
to the Interstate Commerce Act, to indicate the extent to. which 
construction may extend a power of Congress. These cases Eventu¬ 
ally will be reviewed by the Supreme Court, but a reversal of 
the Commission’s decisions by that tribunal appears unlikely. 

While it is clear that the principles of the Commerce Clause, 
as construed by the Supreme Cpurt, have been correctly applied 
by the Commission to the subject matter upon which it acted, yet 
it is not difficult to understand that the members of the Con¬ 
stitutional Convention, in leaving the Commerce Clause to future 
determination, were not cognizant of the fruits which their 
labors would bring forth. 


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THE COLONIAL* PERIOD 


Introductory : 

Many factors have served to mould our Union as it now ex¬ 
ists, under the Constitution. The New England Confederation of 
1643, the Albany Plan of Union of 1754, the Stamp Act Congress 
of 1765, The First Continental Congress of 1774, the Annapolis 
Convention of 1786, and the Constitutional Convention of 1787 
formed stepping stones to our Federal Union and Constitutional 
form of Government. 

During the Colonial Period, the power of regulating the 
foreign and domestic commerce of the Colonies rested largely 
with the British Government. The Colonies were, however, per¬ 
mitted to enforce certain classes of regulations of their own 
making, provided they did not conflict with the policies of 
Britain. These policies were foundeld upon the mercantile 
system, which flourished in Europe during the settlement and 
development of the English Colonies in America. The predomi¬ 
nating characteristics of this system were based upon a belief 
that wealth consisted of money, i.e. gold and silver, and that 
these precious metals could be brought to and retained by a 
country only through a favorable balance of trade, i.e. by an 
excess of exports over imports.1 Accordingly efforts were put 
forth to stimulate domestic industry, in order to increase ex¬ 
ports and curtail the importation of foreign goods for con¬ 
sumption. 

With these considerations in view, the British Government 
sought, consistently, to limit industry in the Colonies to the 
production of such raw materials as could not be obtained in 
abundance in England. Manufactures in the Colonies were dis- 

1 Wealth of Nations (Adam Smith) III, 104. 










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couraged because similar articles were produced in England 
for export, and the raw materials available in America were, 
in many cases, needed by the British Manufacturers. In order, 
however, to stimulate the movement of certain commodities from 
the Colonies to England bounties were offered by the mother 
country for their importation. 

The British Government regarded its Colonies primarily 
as legitimate sources of profit, their trade, generally speak¬ 
ing, being reserved to its merchants. 

Early British Restriction of Colonial Exports . 

Almost from the inception of Colonial commerce there arose 
disputes with the British over its reflation. The Colonies 
always conceded their allegiance to the Crown, but denied their 
subjection to Parliament in certain respectsthey admitted, 
generally, that the regulation of commerce, even by the im¬ 
position of duties, was properly vested in the British Govern¬ 
ment, but they opposed resolutely all attempts to tax them or 
destroy their manufactures and commerce, under the guise, of 

regulation.2 

In the original charters granted to Virginia and some of 
the New England Colonies, temporary exemptions from the im¬ 
position of duties, either on exports or imports were granted 
for limited periods. 

Shortly after tobacco was imported from Virginia into Eng-^ 
land, heavy duties were laid upon it by the British Government. 
Accordingly in 1621, the Virginia Company shipped its tobacco 
to Holland. As this caused a diminution of the revenues of the 
Kingdom, by the non-receipt of the duty, as well as a substantial 
loss of shipping, which went to the Hollanders, an order of the 

Mass. State Papers, edit. 1818, 342 to 365, 384 to 396; 

1 Pitk. Hist. 250, 251, 453, 454. 

^ 1, Chalmers Annals, 452, 460. 




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King and Council, designed to prevent its repetition, was is¬ 
sued to the effect that no tobacco, or any other product of 
the Colonies should thereafter be carried into foreign ports 
until they were first landed in England and the customs paid. 

This was the beginning of a system of commercial monopoly, later 
enforced by Acts of Parliament, which, with other causes, culmi¬ 
nated in the American Revolution. 

The New England Confederation. 

Originally the American Colonies had no political con¬ 
nection, one with the other. While they had a common alle¬ 
giance, each Colony was, to a limited extent, Sovereign within 
its own bounds. In this situation, union could be produced 
only by the existence of mutual desires and interests, in all 
the Colonies. As long as the Colonies were contented under 
British rule and nothing happened to disturb their domestic 
affairs, they were destined to remain separated. The gradual 
movement of the American Colonies, from a state of dependency, 
to their present high position as integral parts of one o.f the 
world ! s great Nations, developed from situations requiring 
unanimity of action among them. In 1643, there occurred the 
first American coalition, the New England Confederation, com¬ 
posed of the Colonies of Massachusetts Bay, Plymouth, Connecticut 
and New Haven. The motive was protection against the Indians, 
who were combining, and the Dutch at New Amsterdam. Articles 
of Confederation were entered into, providing for a firm and per¬ 
petual league, offensive and defensive. 2 

1 Political and Civil History of the United States 

(Pitkin) Vol. I, 93. 

2 History of the American Colonies (Marshall) 112. 






' • 




14 


The Navigation Acts 

In 1644, during the contests between the King and Parlia¬ 
ment, the sympathies of the New England Colonies were openly 
and avowedly expressed for the latter. In recognition of this 
fact. Parliament exempted all merchandise exported to or from 
the New England Colonies from all “duties or other customs.'' 

In 1645 Parliament exempted New England from the payment of all 
tajxes "until both houses should otherwise direct". In the 
following year, the Colonies were exempted from all taxes ex¬ 
cept: the excise "provided their productions should be exported 
only in English bottoms 

As the orders of the King and Council, restricting the 
shipment of tobacco and other commodities to the ports of the 
mother country were not rigidly enforced, particularly in the 
Charter and Proprietary Colonies, the vessels of Holland, at 
that time England's most successful commercial rival, continued 
to carry a considerable part of the produce of the Colonies. 

This condition appears to have been directly responsible for the 
Navigation Act of 1651, which was intended to guarantee protec¬ 
tion too English shipping. It provided substantially, that goods 
of the growth or manufacutre of Asia, Africa or America could 
be imported into British, territory only when transported in 
English ships manned chiefly by English seamen; that goods of 
the growth or manufacture of Europe could be imported into Brit¬ 
ish territory only when carried either in English vessels or 
those of the nation in which such goods were grown or manufac¬ 
tured; that goods of foreign growth or manufacture must be brought 
directly from the country in which they were produced, or from 
those ports through which such goods were customarily exported. 

1 Hi-story of the American Colonies, Marshall, 117. 




t 



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t •• 



15 


In theory at least this act did not give Great Britain a monopoly 
on Colonial tradej it merely forced the traders and producers 
of other countries to use theirrown or English bottoms.! 

In 1660 the Navigation Act was reenacted, in more restrict¬ 
ive form. It provided in substance that goods might be imported 
to or exported from the Colonies only in ships built or owned 
in England, sailed by an English master, and with a crew three- 
fourths of whomewere English; -and that Colonial tobacco, cotton 
woo;, indigo, ginger and dyeing woods might be shipped only to 
England and other British possessions.^ Grain, salt provisions 
and fish were not enumerated for-obvious reasons. Their im¬ 
portation into England would have brought them directly into 
competition with similar commodities produced there. 1 Hence 
Parliament 7/as willing to have them exported to other markets. 
When first enacted, the commodities enumerated were produced 
mainly in the Southern Colonies. Subsequently the list was 
supplemented from time to time by the addition of molasses, 
tar, pitch, turpentine, hemp, masts, yards, bowsprits, copper 
ore, bar and pig iron, pot and pearl ashes, whale fins, hides, 
rice, beaver skins and other furs, coffee, pimentos and coco¬ 
nuts. Eventually, the principal products of all the Colonies 
were restricted to markets in British possessions. 

In 1663 Parliament completed its system for the testriction 
of Colonial trade to Great Britain. This act dealt with trade 
to the Colonies and provided that goods of the growth or manu¬ 
facture of Europe, with certain minor exceptions, intended to 
be imported into English Colonial possessions must first be 
shipped to England or Wales in English-built ships, of. which the 
master and three-fourths of the crew were English, landed, and 
then transported to their Colonial destinations in like manner.3 

^ American Commercial Legislation before 1789 (Giesecke) 4. 

2 Ibid, 4,5,6. 

3 History of the American Colonies (Marshall) 143. 






16 






This act restricted purchases of the Colonies to British markets. 

In 1673, Parliament enacted that certain Colonial products, 
including sugar, tobacco, indigo and cotton wool, when carried 
from one Colony to another, should be subjected to custom duties 
equivalent to those which would have been paid if the same com¬ 
modities had been taken to England. 

These commercial restrictions were a continual source of 
controversy and irritation between the Colonies and the British 
government. While enforced in themMiddle and Southern Colonies, 
they were evaded upon every possible pretext by the New England 
Colonies.^ This condition, and the disputes which arose subse¬ 
quently under it, actuated Massachussetts in its efforts, first 
of all the Colonies, to throw off the British yoke. 

The Colonial product most- seriously affected was tobacco. 
Since 1634 the growth of tobacco in the British Kingdom had 
been prohibited except in Virginia and the Somers Isles; and 
heavy duties were laid upon the importation of Spanish tobacco 
into England. But Virginia produced more tobacco for export 
than was consumed in England and Ireland, and so, necessarily, 
sought a market for the surplus on the continent of Europe. 

The Act of 1663 required tobacco destined to the continent to 
be landed in England, thus increasing the cost of delivery by 
the expense of warehousing in England and higher freight charges 
for the two shipping movements, added burdens which were borne 
chiefly by the Colonists. 

Creation of the Board of Trade and Plantations. 

Most of the charter Colonies, except Connecticut and Rhode 
Island, were required by their charters to forward their legis¬ 
lative enactments to England, within certain periods, for approval 

1, Chalmers Annals 377,380,,407, 440, 443, 448, 453, 460, 

46%, 639, 698, Hutchinson*s State Papers, 496. 


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or disallowance by the. Crown. Commercial laws of the Colonies 
were disallowed, either because they were considered to be 
technically illegal, i. e. exceeded the powers of the legis¬ 
lature or were badly formulated, or because they werd deemed 
contrary to English law and interests. The Crown disallowed 
so many of the tariff acts of the Colonies that at one time 
instructions were issued to the Colonial governors requiring 
such enactments to include a clause suspending their Operation 
until approved.1 

Prior to 1696 the business of the American Colonies was 
attended to by committees of the Privy Council. In that year 
the Board of Trade and Plantations was established, with power 
to "inquire into the condition of the plantations, as well with 
regard to the administration of government, as in relation to 
commerce, and how these Colonies might be rendered more bene¬ 
ficent to this Kingdom."2 Thereafter, the legislative acts of 
the Colonies were passed through this board, and its recommend¬ 
ations were usually adhered to. 

At the outset, the Board of Trade and Plantations outlined 
its general policy to be that "of not allowing the legislatures 
in the American Colonies to pass laws by which the trade and 
shipping of this Kingdom may be affected, either by being sub¬ 
jected to duties or taxes or otherwise cramped or restrained." 3 
Under this policy, acts of Pennsylvania and Virginia increasing 
the import duty on slaves, were disallowed. 4 In addition to 
action by the Board of Trade, Colonial governors were instructed 
to suspend laws which appeared to be prejudicial to English 
interests, pending their transmittal to England for final de- 

\ Revolt of American Colonies, Chalmers,, II, 75, 76. 

2 Annals of Commerce (McPherson)Volume II, 681. 

3 Pennsylvania Stats. L. VI, 610. 

4 Hening, Statutes of Virginia, VIII, 337; Pennsylvania, 

Stats. L., VIII, 619, 620. 





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18 


cision. Frequently these directions were ignored by Governors,, 
in preference to antagonizing the Colonial legislatures, from 
whom they received their pay. About the same time Parliament 
passed legislation requiring -,;Cplonial governors to be sworn to 
the enforcement of the Navigation. Acts, heavy penalties being 
provided for their failure so to do; and granted authority to 
customs officials in the Colonies to search and seize vessels, 
suspected of importing goods illegally, in the same manner that 
similar officers were empowered in England. 

Prohibition laid by Parliament on the Exportation of Rice 

Many of the prohibitions upon the exportation of commodi¬ 
ties from the Colonies to territory other than that of Great 
Britain were laid at. the instance of. interested Englishmen who 
conceived that they were injuriously affected by that trade. 

The details underlying the prohibition on rice 3 how the flimsy 
evidence upon which some of these regulations were based. 

The captain of an English Vessel ’Was unable to secure a cargo 
of Carolina rice for movement to England because of the large 
number of vessels in the same port loading cargoes of the same 
commodity for Portugal. Upon his return to England, he repre¬ 
sented to a member of Parliament that it was detrimental to the 
trade of England that rice should be permitted to be exported 
directly from Carolina to Portugal or any other foreign country-. 
Accordingly, rice was secretly included among the prohibited 
commodities in 1706, by an act of Parliament styled ”An Act for 
granting to her Majesty a further subsidy on wines and merchan¬ 
dise imported”, to which it was wholly unrelated. In this 
clandestine manner, the export market for Carolina rice was 
confined to British territory, thus causing the Colonial, growers 
the loss of the Portuguese market until 173.0, when it was al¬ 
lowed to be *«. ' •• 




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lowed to be exported to any part of Europe, south of Cape 
Finisterre.^ 

The Molasses Act 

The Colonies, particularly those of New England, during 
the first part of the eighteenth century were engaged in an 
extremely lucrative trade with the French, Spanish and Dutch 
West Indies, which enabled them to secure gold and silver with 
which to meet the unfavorable balance always held against them 
py England. The Colonists exported fish, lumber, grain, horses 
and cattle to these islands, and in return, received imports 
of rum, molasses and sugar from thenu It being represented to 
Parliament by the sugar interests of the British West Indies 
that this trade was inimical to their industry, that body in 
1733 passed the celebrated Molasses Act. 2 This act merely 
laid duties on the importation of- rum, molasses and sugar into 
the Colonies from foreign countries. The duties were, however, 
so heavy that their enforcement would have prevented the im¬ 
portation of those commodities, and resulted in the cessation 
of trade of great importance to the Colonies. If the Colonies 
were unable to dispose of their produce to advantage, they 
could not secure necessary moneys with which to meet their un¬ 
favorable balance of trade with England. -.Hence, the Commercial 
Colonies sought, by every possible means, to evade the pro¬ 
visions of that obnoxious piece of legislation. Although orders 
were issued, from time to time, for its strict enforcement, this 
was never done. 

1 Political and Civil History of the United States 

(Pitkin) 100. 

o 

American Commercial Legislation before 1739 

(Giesecke) 6. 






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The Stamp Act 

The idea of a stamp tax., which Resulted, eventually, in the 
enactment of the Stamp Act of 1764, originated in America. 

Ih 1739 a plan of this character was recommended by a club 
of Colonial Merchants, headed by Sir William Keith, governor 
of Pennsylvania.^ The idea was not considered seriously by 
the British government'until 1754, when the condition of 
affairs in America caused its temporary abandonment. 

The .close of the French and Indian wars found the British 
government with a large war debt on its hands, and a disposition 
on the part of the Grenville ministry to create a revenue in 
the Colonies by some form of tax which would, in part at least, 
liquidate the debt. The English considered that having in¬ 
curred the burden in defense of the Colonies, they might right¬ 
fully call upon them to pay it. The Colonies, on the other 
hand, having contributed heavily in men and materials toward 
the victory which was to result, eventually, in the disappear¬ 
ance of France as a power in the New World, felt that they had 
done enough toward the establishment of British Colonial am¬ 
bitions, and should not be taxed further. 

In 1764 action was taken by Parliament for the purpose of 
laying new Colonial duties, and remedying the laxity which pre¬ 
vailed in the enforcement of the existing Acts of Trade. The 
additional duties and new regulations provoked a storm of dis¬ 
approval in the Colonies. The Molasses Act having been suc¬ 
cessfully evaded, the British now proposed to take active steps 
effectually to suppress the commerce which had been carried on 
in secrecy with the French, Spanish and Dutch West Indies with 


such lucrative retults. To that.end, all British naval offi- 
^ History of the American Colonies (Marshall), . 354. 






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31 


cers located in America were required to be sworn and act 
as customs officers. Many seizures were made and penalties 
and forfeitures under the law were recoverable only in the 
$iore-Admiralty Courts. 3- 

While these new measures bore heavily upon the Colonies, 
smuggling continued unabated, and the anticipated revenue was 
not forthcoming. Along with the resolutions upon which the 
new duties and the stringent resolutions of 1764 were based. 
Parliament had declared that it would be proper to impose 
stamp duties in the Colonies for revenue purposes. In re¬ 
sponse to the critical attitude of the Colonies toward the 
proposed measure, Parliament informed the Colonial agents 
that the stamp duty idea would be discarded, if the Colonists 
would suggest some form of taxation, calculated to return an 
equivalent amount of revenue, which might be substituted for 
it. As the agents refused to accept this alternative, Gren¬ 
ville brought his act for imposing stamp duties into Parliament 

The Stamp Act Congress 

Early in 1765 the House of Representatives of Massa¬ 
chusetts passed a resolution suggesting the meeting of a 
Congress of delegates of the different Colonies in New York 
in October of the same year, and subsequently had circular 
letters forwarded to the various Colonial Assemblies for 
that purpose. At the time and place appointed. Commissioners 
of the Assemblies of Massachusetts, Rhode Island, Connecticut, 
New York, New Jersey, Pennsylvania, Delaware, Maryland and 
South Carolina met, chose their chairman and proceeded to 
outline their grievances to the King in a series of fourteen 
declarations, of which but one dealt with the Stamp Act, and 

^ History of the American Colonies (Marshall), 357. 

















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that not wholly so. They took occasion to enumerate all 
those measures of Parliament which they conceived as being 
subversive of their rights and liberties. Three of the 
declarations related solely to British restrictions upon 
Colonial commerce and trade created by acts of Parliament 
theretofore but recently enacted .^ 


Revenue measures enacted by Parliament in 1767 and their 

effect. 


In 1766;the Grenville star declined; Pitt, staunch defender 
of the Colonists’ rights, became Prime Minister of England and 
the Stamp Act was repealed. While the news of the repeal of 
the Stamp Act caused great rejoicing generally throughout the 
Colonies, the same spirit did not prevail in all of them. In 
the commercial cities of the north, the regulations of trade 
were almost as odious as the Stamp Act. 

In June of the following year Parliament laid new duties 
on glass, paper, paste-board, white and red lead, painters' 


History of the American Colonies, Marshall, 360, 471: 

"IX. That the duties imposed by several late acts of 
Parliament, from therpeculiar circumstances of these 
Colonies, will be extremely burdensome and grevious; 
and from the scarcity of specie, the payment of them 
absolut-ely impracticable." 

"X. That as the profits of the trade of these colonies 
intimately centre in Great Britain, to pay for the 
manufactures which they are obliged to take from 
thence, they eventually contribute very largely to 
all supplies granted to the crown." 

"XI. That the restrictions imposed by several late 
acts' of Parliament on the trade of these Colonies 
will* render them unable to purchase the manufactures 
of Great Britain." 







4 4* 



33 


colors and tea, when imported into the Colonies. Great pro¬ 
test was caused by these new exactions, which were openly 
condemned as being for revenue purposes, and not as a matter 
of regulation. In 1768 the Merchants of Massachusetts, 
Connecticut and New York convened and drew up agreements not 
to import British goods. By the close of the following year, 
merchants in most of the Colonies had entered into non-im¬ 
portation agreements against the parent country. The in¬ 
habitants of Charleston, S.C., were so deeply inbued with 
this idea that they determined to discontinue commercial re¬ 
lations with Rhode Island and Georgia because those Colonies 
refused to commit themselves to the non-importation agreement. 
The attitude of Charleston was probably not without its effect, 
for shortly thereafter the two Colonies joined in the agree¬ 
ment. These agreements were intended to influence British 
manufacturers in favor of the Colonists and to develop Colonial 
manufactures* All united in making the agreements effective, 
under the leadership of committees elected by the people to 
superintend importations. On April 12, 1770 the duties imposed 
by the Act of 1767 were removed, with the exception of that• 
on tea. Thereupon, the Colonists refused to drink British 
tea or permit its being landed safely in America. 

The Boston Port Bill and other Coercive Legislation 

The New England Colonies had never submitted obediently 
to the policies of Parliament. They had successfully evaded 
and dexteriously circumvented the resolutions and enactments 
of that body. When evasion and circumvention failed, they 
stubbornly refused to follow the dictates of Parliament. In 
every movement of the Colonies, having for its purpose the 
evasion ox nullification of some resolution, regulation or law 





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24 


of England, Massachusetts led and the other Colonies followed. 
Riots and the destruction of Tory property in Massachusetts 
followed the enactment of the Stamp Act. The Boston Tea Party 
in 1774 was the last straw. Parliament, determined to make 
such an example of Massachusetts that the other Colonies would 
be cowed into submission, passed the Boston Port Bill, pro¬ 
hibiting commercial intercourse with the port of Boston on 
and after June 1, 1774, and removing its custom house and 
customs officials to Salem. This bill was to remain in effect 
until reparation should be made to the East India Company for 
the tea thrown into the harbor and the King was convinced that 
the Bostonians were repentant. By another act, the charter 
of Massachusetts was rescinded and power vested in Parliament 
for the appointment of royal officials to direct the affairs 
of that Colony. Other acts provided for the quartering of 
troops at the expense of the Colonies and for the extra-judicial 
enforcement of criminal justice by arbitrary means.3- 

When the citizens of Boston received intelligence of the 
Port Bill, they met in solemn conclave and, after passing cer¬ 
tain resolutions strongly indicative of their opinion of this 
latest act of tyranny, invited the other Colonies to join with 
them in non-trade agreements against the British Kingdom. The 
members of Parliament evidently had believed that the enforce¬ 
ment of coercive measures would divide the Colonies and dis¬ 
hearten Massachusetts, always the aggressor in the fight against 
British despotism. The effect was exactly the reverse. The 
other Colonies immediately espoused the cause of Massachusetts. 
Resolutions were adopted in almost every Colony deeply sympa¬ 
thizing with that colony. In Virginia, the House of Burgesses 
proclaimed a day of prayer and fasting on June 1, when the Port 
Bill was to become effective. For this resolution, they were 

^ History of the American Colonies (Marshall) 402. 







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dissolved, by the royal governor. Thereupon, they met in the 
long room of the Raleigh Tavern, formed an association, and 
asserted that an assault on one Colony designed to enforce 
submission to arbitrary measures was an attack on all of the 
Colonies, which would result in the destruction of their 
liberties, unless dealt with by united opposition. According¬ 
ly, they recommended that the other Colonies consider the 
question of appointing delegates to meet in Congress annually 
for the determination of matters of common interest to all. 
Similar resolutions had previously been passed at town meetings 
held in New York and Boston. 

When the bills enacted after the Port Bill reached Boston, 
an agreement was formulated styled u a solemn league and cove¬ 
nant”, the signers of which bound themsleves to suspend all 
commercial intercourse with Great Britain beginning August 31, 
1774, until the late obnoxious legislation should be repealed; 
they renounced, moreover, all intercourse with those who would 
not bind themselves similarly, and attached to this renunci¬ 
ation the penalty of proclaiming to the world, the names of 
those who declined to give this testimonial of their confidence 
in the rights of their country. In every Colony, resolutions 
were passed by the legislatures, or by representatives of the 
people assembled in convention when the legislatures were not 
convened, joining with Massachusetts in the substance of its 
non-intercourse agreement. In this manner the Colonies con¬ 
tinued in a state of individual turmoil, until, united by 
common purposes, the representatives of twelve Colonies as- 
sembled on September 4, 1774 at Philadelphia in the first 
Continental Congress. 




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36 


Restriction of Colonial Manufactures by the British 

Great Britain,being committed to the Mercantile System, 
sought to confine industry in the Colonies to the production 
of raw materials, which might be manufactured in England and 
sold back to the Colonists in finished form. As the needs of 
the Colonists had, from the first, been supplied entirely by 
articles of English make, their manufactures would come direct¬ 
ly into competition with those produced in the mother country. 
Being relieved of the burden of transportation. Colonial manu¬ 
factures might very properly have displaced the sale in the 
Colonies of similar articles produced in England. Accordingly, 
at an early date, the British government took steps calculated 
to discourage Colonial manufactures. While this was made a 
definite governmental policy, its consummation was aided by 
English manufacturers, who complained frequently of trade 
losses due to the production of competing goods in the Colonies. 

, In 1699 Parliament directed that no wool, yarn or woolen 
manufactures should be shipped from the Colonies to England or 
any other place. 1 This was the beginning of restrictions on 
Colonial manufactures. Inquiries relating to Colonial manu¬ 
factures were forwarded by the Board of Trade and Plantations 
to the various Colonial Governors and their responses transmitted 
to Parliament. Upon basis of an investigation of this charac¬ 
ter, the House of Commons asserted in 1719 "that the establish-, 
ment of manufactories in the Colonies tends to render them more 
independent of Great Britain." 2 

1 American Commercial Legislation before 1789 (Gi-sseoke) 7. 

p 

Journals of the House of Commons, Vol. III. 






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27 


In 1706 the Board of Trade and Plantations recommended 
that two acts of the Pennsylvania Assembly be disallowed by 
the crowri.l One of the acts was designed to prevent the 
sale and use of ill-tanned leather for manufacturing shoes. 

The recommendation as to this act was made because "it cannot 
be expected that encouragements should be given by law to the 
making of any manufactures made in England in the plantations, 
it being against the advantage of England." 

In 1731, the House of Commons directed the Board of Trade 
and Plantations to inquire and report "with respect to laws 
made, manufactures set up, or trade carried on detrimental to 
the trade navigation or manufactures of Great Britain.” The 
Board reported that certain manufactures carried on in the 
Colonies, including wool, flax, iron, hats and leather, were 
injurious to English producers of similar goods. In 1732, 
upon complaint.of English hatters, Parliament prohibited the 
shipment of hats manufactured in the Colonies, to any place, 
Colonial or otherwise, and laid certain restrictions upon the 
employment of .labor by Colonial hatters. In 1750 Parliament 
prohibited the erection of rolling mills* forges or steel fur¬ 
naces in the Colonies, under penalty of heavy fine. 2 

Not all of the British regulations were restrictive. 
Bounties were offered on a considerable number of commodities, 
principally raw materials, which British Manufacturers were 
forced to secure from foreign countries. The Colonies might 
|ave sold these. commodities elsewhere, if their exportation 
had not been limited to England. 

^ Pennsylvania Stats. L. II, 466, 480, 481. 

2 

Political and Civil History of the United States, 

(Pitkin) Vol. I, 103. 



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The government of the Colonies was of three different 
types, Royal, Charter and Proprietary. Charters enumerating 
certain privileges were granted to some of the Colonies, to 
be exercised through legislative assemblies. In the Proprie¬ 
tary Colonies, similar privileges were granted to the pro¬ 
prietors. The Royal Colony, which was the predominant type 
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legislatures, under their charters. These contests were so 
bitter that the Crown found it convenient at times to abrogate 
Colonial charters. In the Proprietary Colonies differences 
frequently arose between the people and the proprietors. From 
the view point of the Crown, the Royal type was the ideal Colony, 
owing to the difficulty of enforcing governmental policies in 
the Charter and Proprietary Colonies. 

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however, to the exercise of those privileges granted to pro¬ 
prietors or by Charter. In the early Colonial days, the Royal 
Colonies generally complied with the regulations of Parliament, 
even though at times they were found to be extremely burdensome. 
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for revenue purposes, to meet the debt incurred in the French 
and Indian Wars, these Colonies joined with their neighbors in 
spirited opposition to those exactions. 

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and enacted legislation independently of each other, which, in 



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29 


certain instances, was contrary to the policies of the British 
government and the laws of England. Colonial legislation re¬ 
lating to trade and commerce was enacted principally for reve¬ 
nue purposes, but to'less degree also for the protection of 
commodities, the improvement of trade -ana the encouragement of 
ship building. Thus, it will be seen that the theory of pro¬ 
tection to American producers antedates our government, having 
been first invoked by the Colonial assemblies. 

The legislation of the Colonies concerning tiade and com¬ 
merce took the form of import, export and tonnage duties, 
bounties and port regulations. 

Import duties imposed bv the Colonies. 

All of the Colonies except Delaware laid import duties 
upon commodities at various times, for longer or shorter periods. 
In Massachusetts, New York and South Carolina systems were 
developed which continued for considerable periods. At the 
outset, these duties were generally applied on an ad*v&lorem 
basis, but subsequently specific duties became predominant, 
particularly in Pennsylvania, Massachusetts, New York and South 
Carolina. .. 

Most of the Colonies laid relatively high duties on wines 
and spirituous liquors, which we're essentially luxury taxes.:. 

The New England Colonies, in their trade with the West India 
Islands, imported large quantities of molasses, which was used 
in the distillation of rum. Higher duties prevailed in these 
Colonies on rum than on wines and other spirituous liquors, 
the motive probably being to protect the domestic product.1 
The articles commonly made subject to specific duties were wine 
and spirituous liquors, tobacco, sugar, cocoa, moldsees, dye- 

1 American Commercial Legislation before 1789(Gieseeke) 20. 






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50 


woods and tea. Upon all other goods, with certain exceptions, 
ad valorem duties, seldom exceeding 5 per cent of first cost, 
were imposed.1 

In the northern Colonies, lower duties were laid on goods 
imported directly to the legislating Colony from the place of 
growth or manufacture. 2 This was done to encourage the direct 
trade. In many cases these laws applied equally to England 
and thus violated the letter and spirit of the British acts of 
trade and navigation. Most of these violations occurred in the 
Charteraand Proprietary Colonies. Occasionally, higher duties 
were imposed on goods transported overland from a neighboring 
colony than would have applied on the same commodities, if brought 
directly by sea. In 1716, Stephen Goden, a British Merchant, 
requested the Board of Trade and Plantations to revoke the char¬ 
ters of those Colonies in which the assemblies passed enactments 
repugnant to the laws of England. Thereupon, the Board, after 
due consideration, procured a royal order prohibiting royal 
governors from approving Colonial bills which related to English 
trade and shipping, until they had been passed upon by the 
Crown. In 1719 an act of the Pennsylvania legislature, passed 
in 1715, levying import duties on liquors and hops, was dis¬ 
allowed, upon the recommendation of the Board of Trade and 
Plantations that it "not only allows the importation of wines 
in general directly from the place of their growth, which is 
contrary to the act of trade, 15th Charles the Second, but lays 
a double duty on wines as may be imported from any other place, 
which can be only Great Britain."3 j n 1731 the Board reported^ __ 

^ 4cts of the General Assembly of Georgia, 1755-1774, 243; 

Records of Rhode Island,III, 432; Cooper,Statutes of 

0 South Carolina, II, 649. ■ 

2 Colonial Laws of New York,I,165,403; American Colonies, 

Osgood,II,359; Acts and Resolves,Massachusetts II, 11, 

48,76. 

3 Pennsylvania, Stats. L. Ill, 465. 



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31 


that the Colonies imposed lower duties IVori their own effects", 
than upon those of residents of England.I 

Slaves were considered merbhandise, under the navigation 
acts, and accordingly duties were imposed upon their importa¬ 
tion, chiefly as a means of securing revenue, although at times 
the motive of checking their influx into the Colonies was also 
controlling. The slave trade was extremely lucrative, being 
carried on by companies which operated under the authority of, 
and had the support and encouragement of the Crown. Accord¬ 
ingly, the Board of Trade and Plantations consistently recom¬ 
mended the disapproval of acts of the Colonial legislatures 
laying duties on slaves, when the duty was borne by the im¬ 
porter, usually an English merchant or lower duties were paid 
by merchants of the legislating Colony. 

Such violations of English law as resulted from Colonial 
regulations were not intended primarily to prejudice the inter¬ 
ests of British merchants, but rather to provide necessary reve¬ 
nue with the least burden to Colonial merchants. 2 No doubt, at 
times other motives contributed to influence legislation against 
the slave trade, particularly in the closing decades of the 
Colonial status, when there was a strong tendency toward its 
restriction or even total prohibition. 3 The regalations of 
some of the Colonies were intended to safeguard the moral wel¬ 
fare of their inhabitants. This was true of a duty laid on 
rum by North Carolina in 1751.^ 

Some of the Colonies adopted the policy of providing lower 
duties on articles when imported in vessels of the legislating 
Colony. This was done by Pennsylvania, Connecticut, Virginia, 

1 Revolt of the Colonies, Chalmers, II, 118. 

^Revolt of the Colonies (Chalmers) II, 6,7, 118-130. 

3 Suppresion of the Slave Trade (Du Bois), 39, 41. 

4 state Records of North Carolina, XXIII, 363. 



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33 


Maryland, and South Carolina, 1 The mos -fc important of these 
acts were imposed by Connecticut and Pennsylvania on rum and 
wine, 

At times, individual Colonies passed acts levying dis¬ 
criminatory duties upon commodities when imported from certain 
other Colonies, Usually this character of legislation was 
adopted as a method of commercial coercion, when a boundary 
dispute could not be settled amicably. In 1704 during a con¬ 
troversy over the boundary line between Maryland and Pennsyl¬ 
vania, the former Colony provided a duty on liquors imported 
from the latter, of three times that laid when similar goods 
were imported from pther places. This measure continued in 
force for twenty years thereafter. As a result of the same 
dispute, Maryland also prohibited entirely the importation 
of tobacco, provisions, beer, malt and horses from Pennsylvania..2 
Similar legislation was enacted as the result of a boundary 
disagreement between Maryland and Virginia.3 

In a number of cases. Colonies laid import duties to bal¬ 
ance similar duties imposed on their goods by other Colonies. 

In 1721 Massachusetts imposed import and export duties on goods 
in trade with New Hampshire, in retaliation of certain duties 
established by the latter Colony. 4 This was one of the few 
acts in which duties on exports were laid by Massachusetts,and 
it was repealed shortly after its enactment. 

^ Pennsylvania Stats. L. Ill, 363; Public Records of 

Connecticut, IX, 283; Cooper, Statutes of South Carolina, 

II, 200; III, 32,67; Henning, Statutes, III, 33, 88,129; 

Bacon, Laws of Maryland, Chapter 10. 

2 Bacon, Laws of Maryland, 1704, Chapters 30 and 43; 1715, 

Chapter 36. 

3 Tariff controversy, (Elliott), Leland Stanford Jr., 

University Monographs, 1892, 17. 

^ Acts and Resolves, Massachusetts, II, 330. 





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33 


Export duties imposed, bv the Colonies * 

Export duties were not laid as generally by the Colonies 
as import duties. Rhode Island and Delaware never imposed such 
duties. Their enactment by Massachusetts and some of the other 
northern Colonies was confired to one or two minor instances, 
for short periods. With the exception of New York, none of the 
New England or Middle Colonies laid duties on exports after 
1750. These regulations were confined chiefly to New Jersey, 
Maryland and Virginia. They were imposed primarily for revenue 
purposes, the commodities most commonly taxed being tobacco, 
skins, furs and lumber. Their imposition on raw materials was, 
in some instances, intended to encourage domestio manufacturesr 
and industry. This was true of acts passed by the assembly 
of New Jersey in 1714 and 1725, levying export duties on wheat, 
to promote the domestic production of flour. 1 Laws of the same 
Colony relating to staves and other forms of timber, were de¬ 
signed to encourage the manufacture of casks. 2 i n other cases, 
similar duties were provided for to retain necessary commodities 
in a Colony for local consumption. In Maryland, laws of this 
character were passed in 1695 and 1696, imposing duties on 
European goods which were reexported. 3 This expedient for re¬ 
straining the exportation of commodities was not resorted to 
frequently, the more usual method being by embargo. 

Export duties, as a source of revenue, were important in 
the Southern Colonies, particularly Maryland and Virginia.. 

From the earliest times, tobacco constituted the principal crop 
in Maryland and Virginia. In Maryland the first duty on the 

^ New Jersey Archives, IV, 196. 

2 New York Colonial Documents, V,767. 

3 Bacon, Laws of Maryland, 1695, Chapter 24; 1696,. Chapter 9. 




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exportation of tobacco was imposed in 1649, being 5 per cent, 
unless exported to England, Ireland or Virginia.! Similar acts 
were passed, from time to time, varying the volume of the duty, 
until the Revolution. One of these laws, passed in 1671, con¬ 
tained a provision that a portion of the duty collected on 
tobacco should be reserved to the proprietor, on condition that 
he would accept tobacco at two shillings per pound in lieu of 
quit-rents and alienation fines. For many years this provision 
proved a fertile source of dispute and irritation between the 
Assembly and the proprietor. 2 

In Virginia, the earliest duties were laid on tobacco not 
exported directly to England in English Vessels. At that time, 
Virginia being a dutiful colony, laid the duties for the pur¬ 
pose of imposing a disability upon the shipping of Holland, 
which was England’s most successful commercial rival. The'sub¬ 
sequent acts of Virginia, exempting its ship-owners and those, 
of the New England colonies from the payment of these duties, 
indicate that this was the motive behind the original legisla¬ 
tion. 3 duties were not laid by Virginia on the exportation of 
tobacco, for revenue purposes, until 1658.4 changing the 

export duty on tobacco were passed from time to time down to the 
Revolution, when the duty then in force was repealed. 5 Virginia 
was permitted by England to apply a portion of these duties to 
the support of william and Mary College. 6 

^ Bacon, Laws of Maryland, Chapter 3. 

^ Maryland Archives, Proceedings of the Assembly, 1666-1676, 
355-358; Mereness, Maryland, 346-348. 

5 Hening, Statutes, I#537; II, 133,318. 

4 Hening, Statutes, I, 491. 

^ Hening, Statutes IX, 163. 

6 Hening, Statutes, VI, 93. 



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35 


Export duties on lumber were provided for, at different 
times, by six Colonies. These measures while enacted for re¬ 
venue purposes, also had behind them the motive of encouraging 
home industry, as all the Colonies which laid them were adjacent 
to ship building and coopering centers except South Carolina. 
However, the duty on timber was laid by South Carolina at a 
when that Colony had established other measures calculated to 
foster its shipping.^ 

The most active of the Colonies in laying export duties 
on lumber was Connecticut. The chief purpose of the regulations 
of that Colony was the encouragement of trade with the West 
Indies. Another minor influence behind its legislation was the 
restriction of its standing timber to its ship building.and 
coopering interests. The revenue-producir^g aspect was not con¬ 
trolling. The first act was passed in 1673, laying relatively 
heavy duties upon a large variety of lumber. Subsequently, in 
1714 and 1715, duties were imposed on timber exported to Massa¬ 
chusetts Bay, New York, New Jersey, Rhode Island and New Hamp¬ 
shire.^ The primary purpose of these acts was to encourage 
the trade of inhabitants of the Colony with the West Indies, 
and to restrain the movement of lumber to foreign ports through 
the neighboring Colonies. 

The acts of New Jersey, levying duties on lumber articles 
were prompted by a desire to protect its standing timber from 
unnecessary waste. The duties on export lumber provided by New 
Hampshire, Massachusetts and Plymouth, were revenue measures 
solely. 

Eight Colonies inposed export duties on skins and furs. 

In Georgia, North Carolina and Pennsylvania these were the only 

Cooper, Statutes, II, 200. 

2 Public Records of Connecticut, V, 434, 499; IX, 286. 



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commodities upon which such duties were laid.l The earliest 
Colonial duties, except in New York, were designed to restrict 
the exportation of fursj* Subsequently, they were intended 
primarily for revenue purposes. The interest of New York 
in the fur trade was probably greater than that of any other 
Colony. The inhabitants of that Colony, during its occupation 
by the Dutch, had engaged in a thriving and extensive fur trade 
with the Indians, which was continued when the English took 
possession in 1664. Duties were imposed by the Dutch at an 
early date, and were continued by the English. 2 

Colonial Bounties 

The practice adopted by England, of granting Colonial 
bounties, has been referred to. All of the Colonies except 
iblaware offered bounties for the production of certain arti¬ 
cles as a means of increasing trade and commerce. The most note¬ 
worthy bounties were granted by the New England Colonies, Vir¬ 
ginia and South Carolina. In the Northern and Middle Colonies, 
bounties were confined almost exclusively to those offered for 
the encouragement of the production and manufacture of hemp and 
flax. Virginia and South Carolina, on the other hand, pffer- 
ed, in addition, bounties on numerous other commodities. The 
British government desired the Colonies to produce commodities 
which would provide means to pay the balances due the mother 

^ Laws, Pennsylvania, 1682 to 1700, 138; State Records of 
North Carolina, XXIII, 613; Watkins, ADigest of. the Laws 
of Georgia, 149, 180. 

^ Laws and Ordinances of New Netherland, 154, 172; New York 
Colonial Documents, V, 775, 778, 781, 782; Journal of 
the Council of New York, I, 591. 




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country for its manufactured articles, and yet would not com¬ 
pete with English manufactures. Accordingly, from time to 
time, the Colonial governors urged the Colonial legislatures 
to grant bounties on certain articles.^ 

The English manufacturers required hemp and flax. Hence 
the British government offered bounties for the exportation 
of these commodities from the Colonies. Notwithstanding this 
fact, the quantity of hemp exported to England was comparative¬ 
ly small. These articles were, however, of considerable im¬ 
portance in several of the Colonies, and the probability is 
that the Colonial bounties were beneficial in increasing the 
quantity for domestic production. 

Silk was one of the most prominent of the commodities for 
the production of which bounties were offered. Connecticut, 

New Jersey, South Carolina, Georgia and Virginia endeavored 
in this way to promote its production. 2 Virginia in 1662 offer¬ 
ed the first Colonial bounty for silk production.3 As the first 
bounties did not produce the anticipated results, the Assembly 
finally offered ten thousand pounds of tobacco for every fifty 
pounds of silk produced. In Georgia large expenditures were 
made for the purpose of encouraging the silk industry, but here, 
as elsewhere, the results ended in failure. Filatures were 
established, experts secured, machines, trees, seed and silk¬ 
worm eggs furnished, and liberal bounties offered by the pro¬ 
prietors. At One time, one of the prerequisites to membership 

1 Votes of the Assembly of Pennsylvania, III, 6, 7, 128, 139; 

Journal of the Council of New York, II, 1540, 1544; 

New Jersey Archives, 1st Series IX,491; XXIV,542,555. 

2 Public Records of Connecticut, VII,494,495; 

Allison, Acts of the Assembly of New Jersey, 281; 

Cooper, Stats. (South Carolina) III, 436,613; 

Colonial Records of Georgia, VI, 324; 

„ Hening Stats, of Virginia, II, 121. 

^ Hening, Stats, of Virginia, II, 121. 



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38 


in the Assembly of that Colony was the cultivation of one 
hundred mulberry trees; after 1753, each member was required 
to maintain in his family one person competent in the art of 
reeling silk, and to produce fifteen pounds of silk for every 
fifty acres of his land.l Some silk was produced in Georgia 
and South Carolina but by the time of the Revolution the in¬ 
dustry had disappeared, even in these Colonies. 

Bounties on wheat, flour and salt were offered in several 
of the Colonies where those staples were required, but not 
produced. Massachusetts, Virginia, Georgia and South Carolina 
granted bounties at different times, upon the production of 
wheat and the manufacture of flour.2 Bounties on salt were 
given by Virginia and South Carolina. After 1663 this commodity 
could be imported into the Colonies directly from foreign coun¬ 
tries other than England. 3 As the Colonies imported their very 
necessary supply of salt, the general method of stimulating its 
importation was by exemption from import duty. 

Shipbuilding, while an important industry in New England, 
was not carried on to any great extent in the Middle and South¬ 
ern Colonies. In order to encourage their shipping interests, 
Virginia, South Carolina, New York and New Jersey offered boun¬ 
ties for the construction of vessels. The efforts of Virginia 
achieved a small measure of success, but those of the other 
Colonies were wholly unproductive. 4 Bounties for the production 

Colonial Records of Georgia, VI, 181,320,323,325,390,407; 

Jones History of Georgia, I, 433,434; Bishop, History 

of Manufactures, I, 357. 

2 Acts and Resolves, (Massachusetts) IV, 527; 

Cooper, Stats. (South Carolina), III, 613, IV, 327; 

Hening, Stats. (Virginia) I, 469; II, 123; 

Watkins, Digest of the laws of Georgia, 156. 

3 15 Charles II, Chapter 7. 

4 Hening, Stats. (Virginia) II, 122, 178, 204, 242, 516; 

Cooper, Stats. (South Carolina) III, 742; IV, 10; 

Journals of the Council of New York I, 661, 731; 

New Jersey Archives, 1st Series XIII, 433, 463. 








39 


of numerous other commodities were offered by different Colo¬ 
nies. South Carolina granted bounties on wine and indigo in 
1694* and upon wine and olive oil in 1744. Results were achieve 

ed in the case of indigo* which within a few years became the 
second staple of that Colony.^ 

In addition to bounties for production, some of the Colo¬ 
nies granted bounties for the exportation of commodities. While 
bounties upon production tended to increase foreign trade in¬ 
directly, bounties upon exportation were designed to accomplish 
that result directly. This class of legislation was confined 
almost exclusively to Virginia, North Carolina and South Caro¬ 
lina. In 1722 Virginia provided export bounties on hemp and 
tar. 2 In 1764 North Carolina offered bounties on hemp* flax, 
pot and pearl ashes. 3 South Carolina granted bounties on salt 
petre and potash in 1707, 4 and oh hemp, flax, cotton, ginger 
and indigo in 1744. 5 In 1754 New Hampshire offered a bounty 
upon tar. 

As England required large quantities of naval stores during 
the early part of the eighteenth century, the British govern¬ 
ment granted bounties upon the Colonial production of those com¬ 
modities, eliminated duties upon their importation from the 
Colonies, and restricted their exportation by the Colonies to 
British possessions. Virginia, North Carolina, South Carolina 
and New Hampshire reciprocated in part, Virginia, North Carolina 
and South Carolina, by granting bounties on hemp, and Virginia 
and New Hampshire, by granting bounties on tar. These measures 
were practical failures, as the Colonies did not produce enough 

1 Trott Laws of South Carolina, 34; Cooper Statutes, III, 615. 

2 Hening, Statutes IV, 96; VI, 144; VIII, 363. 

3 State Records of North Carolina, XXIII, 923. 

4 Cooper, Statutes of South Carolina, II, 307, 385. 

5 Cooper, Statutes of South Carolina III, 615. 



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40 


of the commodities in question to supply their own demands. 
Apparently, the only successful expert bounty, in a practical 
sense, was that granted on indigo* Its cultivation increased 
to such an extent that after two years the bounty was elimift 
nated, being no longer necessary. 

The Colonies, in order to maintain the reputation of staple 
commodities in foreign markets, generally provided for their 
inspection upon tender for export. The inspection of lumber 
and meat prevailed in all of the Colonies. In New York and the 
New England Colonies, the inspection of fish was regularly 
provided for.l In New York, New Jersey, Pennsylvania and 
Maryland flour and bread were inspected.2 

Tobacco was practically the sole product of Virginia, and 
the principal single commodity exported from all the Colonies. 
Inspection was provided by law in Connecticut, Pennsylvania, 
Delaware, Maryland, Virginia, North Carolina, South Carolina 
and Georgia. The regulations of Maryland and Virginia were 
quite detailed and rigorously enforced. Tobacco of inferior 
quality was rejected and could not be exported. In Virginia 
as a further precaution the shipment or sale of North Carolina 
tobacco was prohibited by law.3 

In the New England and Middle Colonies, the casks in which 
liquors were shipped, were required to be gauged.^ In the 


Public Records of Connecticut, III, 417; 

Acts and Resolves (Massachusetts) 1,49; II>,s286,379,601. 
Pennsylvania Archives, 4th Series, I, 475. 

3 Bacon,Laws of Maryland, 1763,Chapter 18; 

Hening Stats, of Virginia. 11,445; 

Bruce Economic History of Virginia,I, 304-308; 

Hawk,History of North Carolina,II, 234; Mereness,Maryland, 
110-117. 

4 Colonial Laws of New York, I, 58; 

Whitmore,Colonial Laws of Massachusetts, 16; 

Batchellor, Laws of New Hampshire, I, 197; 

Public Records of Connecticut, III, 417; X,129; 

Acts and Resolves of Massachusetts, II, 49; 

Acts and Laws of His Majesty's Colony of Rhode Island 
(1752), 101. 










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41 


Southern Colonies, Massachusetts, New York and Connecticut, 
naval stores were inspected. Among other commodities, on 
which inspection was provided by law in different Colonies 
at various times, were butter, 1 flax, 3 indigo,3 grain,$ 
leather, 5 malt 6 and rice 7 . 

Considered in their entirety, these regulations contri¬ 
buted beneficially to the commerce and trade of the Colonies, 
by maintaining a high standard of excellence in commodities 
exported. While laxity existed in their administration in 
some Colonies, taken as a whole, they constituted a deterrent 
to the exportation of inferior goods, which redounded to the 
benefit of conscientious producers. 


Colonial Tonnage Duties 


Tonnage duties, or "powder money”, were levies imposed on 
vessels calling at ports of the Colonies, computed upon basis 
of their tonnage. They were laid generally by all of the Colo¬ 
nies except Delaware and New Jersey. At first powder was ac¬ 
cepted, in lieu of money, in settlement of thess levies, which 
caused them to be known as "powder money". Originally, they 
were imposed, primarily, as revenue measures, being used in 
providing and maintaining fortifications for.the defence of the 


State R e cords of North Carolina XIII, 485. 

^ State Records of North Carolina, XXIII, 639,790; 

Colonial Laws of New York,V, 361; 

Watkins,Digest of the Laws of Georgia, 159. 

3 Cooper, Statutes of South Carolina, III, 718. 

^ Allison, Acts of the Assembly of New Jersey, 71, 3$&. 

® ^Colonial Laws of New York, V,71; * 

Hening, Statutes of Virginia, III, 75; 

Whitmore,Colonial Laws of Massachusetts, 88; 

Records of Rhode Island IV, 7; 
r, Watkins,Digest of the Laws of Georgia, 149. 

b Acts and Resolves (Massachusetts) II, 447. 

^ State Records of North Carolina, XXIII, 432,435,639,790; 
Cooper,Statutes of South Carolina,. Ill, 497. 





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42 


Colonies. Subsequently, the revenues derived from tonnage 
levies were expended in the establishment and upkeep of light¬ 
houses, beacons and buoys. 

While the tonnage duties were laid to provide revenues, 
they also served the purpose of encouraging shipbuilding and 
trade, by means of exemptions to vessels of the legislating 
Colony. This was a matter of great importance to the New 
England Colonies, which owned the bulk of Colonial vessels. 

Where exemptions did not apply equally to British ships, English 
merchants complained to the Board of Trade and Plantations, 
which, in many cases recommended the disallowance of discrimi¬ 
natory acts. 

Colonial Port Regulations 

Numerous important and essential port regulations pro¬ 
vided by Great Britain or the Colonial Governments were in force 
in the Colonies. Ports of entry were established, at which 
the British and Colonial customs officers were located. The 
number of ports of entry in the different Colonies varied ac¬ 
cording to their grographical location. In 1663 Massachusetts 
established th^ee customs districts.1 In 1659 Connecticut 
provided nine ports of entry which in 1702 were reduced to 
eight.2 in 1668, the Governor of Maryland limited the number 
of ports of entry in that Colony to twelve.3 j n 1683 the ports 
of entry in that Colony had increased to 31, and by 1689 they 
numbered fifty seven.4 Virginia attempted, unsuccessfully, to 

^ Whitmore, Laws of Massachusetts, 139,140. 

^ Public Records of Connecticut, I, 332; III , 307 .308;IV,374,397 
3 Maryland Archives,Proceedings of the Council,1667-1687, 31,32 
^ Maryland Archives, Proceedings of the Assembly, 1678-1683, 

353,488,492,540. 





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43 


make Jamestown the sole port of entry. This was impracticable 
in a plantation Colony. North Carolina had no good ports, and 
considerable of its early commerce moved through Virginia and 
South Carolina. South Carolina and Georgia had a limited number 
of ports of entry. 

Massachusetts, Rhode Island and Connecticut adopted mari¬ 
time codes, relating to shipping and seamen.^ C,Quarantine regu¬ 
lations were enforced in most of the Colonies.3 i n Massa¬ 
chusetts, Delaware, Pennsylvania, New York, Georgia and South 
Carolina, the Colonial legislatures regulated wharfage charges.3 

Administrative officials charged with the enforcement of 
the laws respecting trade and navigation were provided by the 
British government and by the Colonies. The number of such 
officials, their titles, the manner of their appointment and 
their specific duties differed widely in the various Colonies. 

In some of the Colonies, laws relating to the enforcement of 
the navigation acts were very meagre.4 j n others, more elabo¬ 
rate and specific acts were passed.5 as a whole, the adminis¬ 
tration of the navigation regulations was lax and inefficient. 

In order to insure proper collection of tonnage duties, 
vessels were required to be registered. Masters were required 
to furnish a sworn statement of the tonnage of-, their vessels. 


4 Whitmore,Colonial Laws of Massachusetts, 93-100; 

Colonial Records of Rhode Island, I, 151. 

2 Cooper, Statutes of South Carolina. Ill, 735; 

Acts and Resolves (Massachusetts) I, 143; 

Colonial Laws of New York, I, 345, 866; 

Batchellor,Laws of New Hampshire,!, 80,571,691; 
Colonial Records of North Carolina. II, 758, 762. 

3 Whitmore,Colonial Laws (Massachusetts) 156,157; 

Laws of Delaware (1797) I, 481; 

Colonial Laws of New York, II, 847; III,437,993; 
Cooper, Statutes of South Carolina, IV,286,435; 

. Watkins,Digest of Laws of Georgia 159. 

4 Pennsylvania-Stats. L., II, 108. 

^ Cooper, Statutes of South Carolina, II, 42,64,71,73,200. 




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44 


It was customary for the master to state approximately two- 
thirds of the actual tonnage to the customs officer. 

The public officers of ports, including British officials, 
were paid by fees authorized by the Colonial legislatures or 
by the governors, min Colonies where these fees were authorized 
by the Colonial Assemblies, officials charged with enforcing 
the British Acts of Trade and Navigation, were, in many cases, 
deterred from a strict performance of their duties to the 
British Crown, because they realized that the Assemblies had 
power to suspend their compensation. This accounts in great 
measure for the laxity in the enforcement of those acts in 
the New England Colonies. 

In all of the Colonies except New Hampshire, Rhode Island, 
New Jersey and Maryland, systematic pilotage regulations were 
established by law. The Southern Colonies were particularly 
active in this respect. This was due to the fact that settle¬ 
ments in these Colonies, which were almost exclusively engaged 
in agricultural pursuits, were situated considerable distances 
inland, adjacent to tortuous and ahifting streams, the navi¬ 
gation of which required the services of competent and experi¬ 
enced pilots. Originally, in New York and South Carolina, the 
governors were authorized to appoint pilots. Usually, however, 
Boards or Commissions were established to examine applicants 
for positions as pilots. 1 While the duties of pilots were 
generally provided by law, the Boards were permitted to estab¬ 
lish minor regulations.2 

1 Pennsylvania Stats. L., VII, 19; 

Colonial Laws of New York,IV, 173; 

Stater’ Records of North Carolina, XXIII, 355, 375; 

Trott, Laws of the Province of South Carolina, 610; 

Watkins, Digest of the Laws of Georgia, 75. 

^ Colonial Laws of New York, IV, 173; 

Cooper, Statutes of South Carolina, III, 325,678,713; 

'j;V^4^1,Hening,:'Sth,tute8 of'Virginia, VII, 580. 



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45 


Pilotage fees w©re provided by law. In most of the Colonies 
pilotage was compulsory h^rt during different periods it was op¬ 
tional, as to certain classes of vessels, in New York,** Georgia, 
and South Carolina} In some of the Colonies, one-half of the 
regular pilotage fee was required if the vessel refused the ser¬ 
vices of a pilot. 


SUMMARY OF COLONIAL REGULATIONS 

From an analysis of the Colonial regulations relating to 
commerce and trade , it is clear that there was no unity of pur¬ 
pose in the legislation upon basis of which they were estab¬ 
lished. Each Colony, in its quasi-sovereign relation to Eng¬ 
land, established such regulations as seemed likely to advance 
its interest. No uniformity existed, except ao far as the 
regulations applied to Great Britain. In that sense the Colo¬ 
nial laws were only partially uniform, for many times the Board 
of Trade and Plantations was called upon to consider their 
disallowance, by virtue of discriminations against England. 
Frequently, conflicting legislation was not repealed until 
after it had been in effect for considerable periods. Thus, 
upon the separation from England and the establishment of union, 
the back ground was prepared for the struggle under the Articles 
of Confederation which eventually led to the adoption of the 
Constitution. 

1 Colonial Laws of New York, I, 334, II, 303, 700, 949; 

III, 678, 753; IV, 173,378,337,533,653; 

Watkins,Digest of the Laws of Georgia, 75; 

Cooper,Statutes of South Carolina, III, 491; III, 713. 






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II 

THE REVOLUTIONARY PERIOD 

The Continental Congress 

From its first meeting on September 4, 1774, until the 
adoption of the Articles of Confederation on March 1, 1781, 
the Continental Congress was a revolutionary body. This first 
Congress self-styled in its formal acts "the delegates appoint¬ 
ed by the good people of these colonies" 1 , proceeded in a manner 
calculated to compel redress by Britain of the grievances to 
their constituents without further widening the breach which 
had been created between the colonies and the mother country. 

Non-imoortation Agreements Promulgated ,by Congress. 

On October 14, 1774, the Continental Congress passed re¬ 
solutions suspending the importation after December 1 of that 
year, of any goods whatsoever from Great Britain and Ireland, 
of East India tea from any part of the world, of molasses, 
syrups, coffee or pimentos, from the British West Indies, of 
wines from Madeira, of slaves and foreign indigo. It declared 
in no uncertain terms that the people of the Colonies would not 
thereafter be concerned in the slave trade, nor would they con¬ 
sume tea imported by the East India Company. They urged that 
all exports to British possessions should cease after September 
10, 1775, "unless the grievances of American are redressed by 
t^at time" 2 . An association was formed by the members repre¬ 
senting the twelve colonies, and on behalf of their constituents 
agreements of non-imputation, non-exp or tat ion and non-consump¬ 
tion were signed, to carry into effect the resolutions which 
had been adopted . Colonies which did not join in these agree- 

istory on the Constitution, Vol.l, paragraph 200. 

"Journals of Congress, .21, 

° Georgia did not send delegates until July 15, 1775, and they 
were.not seated until September 13, 1775. 








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ments were threatened with non-intercourse. 

At this "time the majority of the members of Congress 
cherished the hope that the union of the Colonies, the com¬ 
bined force of their opposition to the measures of Parliament, 
and the loss of trade by English merchants occasioned by the 
non-intercourse agreements, would induce the British Adminis¬ 
tration to yield and restore hafmony again between the Colon¬ 
ies and the mother country. In England, there were many 
American sympathizers, who urged the Colonists to persist in 
the honorable course begun to secure the restoration of their 
rights* 

The members of this Congress in the Declaration of Rights, 
presented to the world as their point of view upon the ques¬ 
tion of Colonial privileges, admitted the right of Parliament 
to regulate Commerce by the enactment of bona-fide laws, for 
the purpose of securing the commercial advantages of the whole 
empire to the mother country, and the commercial benefits of 
its respective members; but they denied the inherent right of 
Parliament to impose taxes purely for revenue purposes.^ 

I ■- 

Journals of Congress 1774, 38, 39; History of the American 
Colonies, Marshall, 413,483. 

"Resolves, 4. That the foundation of English liberty and of 
all free government is a right in the people to participate 
in their legislative council; and as the English Colonists 
are not represented, and from their local and other circum¬ 
stances cannot properly be represented in the British Par¬ 
liament, they are entitled to a free and exclusive power of 
legislation in their several provincial legislatures, where 
their right of representation can alone be preserved, in 
all cases of taxation and internal polity, subject only to 
the negative of their sovereign in such manner as has been 
heretofore used and accustomed. But from the necessity of 
the case, and a regard to the mutual interests of both 
countries, we cheerfully consent to the operation of such 
acts of the British Parliament as are bona fide restrained 
to the regulation of our external commerce, for the purpose 
of securing the commercial advantages of the whole empire ••• 
to the mother country, and the commercial benefits of its 
respective members; excluding every idea of taxation, in¬ 
ternal or external, for raising a revenue on the subjects 
in America without their consent." 





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-46- 


Congress addressed the inhabitants of the Colonies, and 
exhorted them to be firm, urging that "against the temporary 
inconveniences yoip: may suffer from a stoppage of trade, you 
will weigh in the opposite balance, the endless misery you 
andyyrnr descendants must endure, from an established arbitrary 
power"Throughout the Colonies, the recommendations of Con¬ 
gress were adhered to as laws of strongest obligation. 

Coercive Measures of Parliament 
Early in 1775 Lord Chatham took steps calculated to con¬ 
ciliate the Colonies, He presented a bill to Parliament pro¬ 
viding for the withdrawal of British troops, which had been 
quartered in Boston. Not discouraged by the defeat of this 
measure, he presented a further bill calculated to settle the 
difficulties of America, But Parliament was strongly inclined 
to support its policies to the limit and so this conciliatory 
move was discountenanced. Shortly thereafter. Parliament de¬ 
clared to the King, in a motion sponsored by Lord North, that 
"a rebellion exis.ts in the province of Massachussetts Bay 11 , 
Parliament, inflamed against the opponents of its policies, 
determined to bring the Colonies to submission by means of 
coercive commercial restraints. As might have been expected, 
action was taken first against New England. A bill was in¬ 
troduced restricting the trade of Massachusetts, Connecticut, 
Rhode Island and New Hampshire to Great Britain, Ireland and 
the British West Indies and prohibiting those Colonies from 
carrying on fisheries on the Banks of Newfoundland and other 
places. While this bill was pending. Lord North proposed, as 
an alternative, that the Colonies should be permitted to tax 
themselves in such manner as would be satisfactory to them. 

^ History of the American Colonies (Marshall), 419, 




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This proposition, designed to divide America and unite Great 
Britain, was forthwith transmitted to the governors of the 
respective colonies* As it proved unacceptable the coercive 
trade bill was passed in February, 1775. ^ Subsequently, upon 
the receipt in England of information to the effect that cer¬ 
tain other Colonies were actively engaged in supporting the 
opposition of New England, a second bill was enacted, imposing 
similar restrictions on the remaining Colonies, except New York, 
Georgia and North Carolina, which were considered less dis¬ 
affected than the others.^ 

The Beginning of the Revolution 
In April, 1775, occurred the first clash between the 
Colonists and the British at Lexington. Even after Lexington, 
many Americans fondly hoped that the difficulties with Great 
Britain might be composed. Congress set to work putting the 
country in a state of defence, but at the same time passed re¬ 
solutions expressing the most fervant desires of conciliation 
with the mother country. It was determined to address a peti¬ 
tion to the king and to take steps toward negotiations in order 
"to accommodate the unhappy disputes subsisting between Great 

•Z 

Britain and the Colonies'.' 

Congress Adopts Further Non-intercourse Measures 
In May, 1775, Congress having no great confidence in the 
pacific overtures made to the Crown, adopted resolutions extend¬ 
ing the prohibition on importations to Quebec, Nova Scotia, St. 
John's, Newfoundland, Georgia, except St. Johnts Parish and East 

and Wejst^Florida^ 4 _ _ _ 

1 History of the Americah Colonies (Marshall) 426-428. Poli¬ 

tical and Civil History of the United States (Pitkin) 314. 

2 Journals of Congress, 1775, 103. 

3 History of the American Colonies, (Marshall), 443. 

4 Journals of Congress, 1775, 103. 





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-50- 


Even, however, after the battle of Bunker Hill in June, 1775, 
allegiance to the king was still acknowledged, and hope still 
remained that the difficulties with the mother country might be 
amicably adjusted. Congress addressed the King in almost humble 
and dutiful petition, and in a cordial letter directed to the 
people of England, referred to them as n ffiends, countrymen and 
brethren," and urged that the steps thus taken were designed to 
prevent the dissolution of "that connection which the remembrance 
of former friendships, pride in the gloriouBSachievements of 
corrmon ancestors, and affections for the heirs of their virtues, 
has heretofore maintained"!. They professed themselves as oppos¬ 
ed to independence, and declared that union with England, based 
on constitutional principles, was the most to which their hopes 
aspired. 

Prohibition of Trade With the Colonies Declared 
by Parliament, 

In Decern "her, 1775, Parliament took more decisive steps and 
thus forced matters to a speedy climax. All trade and commerce 
with the colonies was prohibited. The capture and condemnation 
of all vessels and their cargoes found trading with the colonies, 
was provided for. The title to property so taken was vested in 
the captors, and the crews of such captured vessels were to be 
treated as slaves 3 . In retaliation, the Congress authorized the. 
exportation and importation of goods from all foreign countries, 
not subject to Great Britain; prohibited the importation of slaves 
and provided for the forfeiture of prohibited goods 3 . 

1 History of the American Colonies (Marshall), 457. 

^ Political and Civil History of the United States, (Pitkin),314. 

3 Jounnals of Congress, 1776, 132, 123. 








I 







- 51 ' 


The Adoption of the Declaration of Independence . 

All of these measures, progressively moved toward se¬ 
paration from the mother country, and marked a rugged determi¬ 
nation on the part of the Colonists to maintain their liber¬ 
ties at every hazard. Thereafter events moved decisively. 

On June 7, 1776, a resolution of Congress recited that ao 
Committee be appointed to prepare a declaration "that these 
united Colonies are, and of right ought.to.be, free and in¬ 
dependent states; that they are absolved from all allegiance 
to the British crown; and that all political connection be¬ 
tween them and the state of Great Britain is, and ought to 
be, dissolved."1 On June 11, a committee was appointed to 
prepare a form of confederation to be entered into between 
the Colonies; another committee was deputized to arrange a 
plan of treaties to be proposed to foreign powers^. On June 
28 the committee appointed to prepare a declaration of inde¬ 
pendence submitted the results of its labors. On July 2, the 
Congress adopted the resolution for independence; on July 4, 
it adopted the Declaration of Independence. 

By the Declaration of Independence the colonies threw off 
their allegiance to Great Britain and became sovereign and in¬ 
dependent states, associated together in a congressional body 
for mutual protection. As yet. Congress was still a revolu¬ 
tionary body, which had no defined power, and looked to the in 
dividual states for such action as appeared necessary. Never¬ 
theless, by common consent. Congress took upon itself those 
powers of external control, which before had been conceded to 
the King or Parliament, together with such others, as the emer-. 
gency called for from day to day. 

During the revolution most of the laws of the colonies lay 

ing duties on imports and exports expired or were repealed, as 

2 

trade was vi_rtual.ly suspended _____’__ 

1 Journals of Congress, 1776, 205,‘206. ■ 

\ Journals of Congress, 1776, 207. 

^ Laws of Maryland (1765-178S) Februarj^ 1777, Chapter 18; 

Hening, Statutes, (Virginia) IX, 162, 361. 






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- 52 - 


III 

PERIOD OF THE CONFEDERATION 
Ratification of the Articles of Confederation, 

The union of states grew out of the exigency of the times; 
the Continental Congress had no definitely established area of 
jurisdiction; it was a war-time body, born of expediency, and 
from its nature and purposes might well have been temporary, 
existing only until the conclusion of war and the restoration 
of peace; it was, however, realized by discerning minds that the 
future existence of the states as independent sovereignties 
was fraught with danger. Separated, the opportunity of futute 
reconquest by Great Britain was enhanced. Moreover, there was 
a possibility of serious differences, perhaps civil war, be¬ 
tween the different Colonies. Accordingly, the same mutual in¬ 
terests which had united the colonies so often against Great 
Britain, now drew them together as independent States. 

On June 11, 1776, the day on which a committee had been 
appointed to prepare a Declaration of Independence, Congress 
passed a resolution declaring that "a committee be appointed to 
prepare and digest the form of a confederation to be entered 
into between these Colonies" 1 . The following day such a com¬ 
mittee was appointed, consisting of one member from each Colony. 
On July 12 this committee reported a draft of the Articles of 
Confederation. Debate on this report was had between July 
22 and August 20. On the latter date. Congress, in committee o: 
the whole, reported a.mew draft, which was ordered to be print¬ 
ed for the use of the members 2 . Consideration of this matter 
was not taken up again until the following year, when it was 
debated several times. OEn November 15, 1777, the articles were 
finally adopted by Congress. A circular letter, drafted by a 

* 

1 Journals of Congress, 1776, 207. 

2 Secret Journals, 1776, 304. 





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-53 


Congressional Committee, was transmitted to each of the States, 
requesting that their delegate?#, in Congress be authorized to 
subscribe the Articles of Confederatiom on their behalf. 

At this time. New Jersey registered formal objection to 
the Articles as Jirafved, because they contained no provision 
for the regulation of the foreign trade of the country by Con¬ 
gress. On June 25, 1778, the legislature of New Jersey laid be¬ 
fore Congress a memorial, in which it was declared that the ex¬ 
clusive power of regulating the trade of the United States with 
foreign nations ought to be clearly vested in the Congress, and 
that the revenue arising from the duties and customs ought to 
be appropriated to the building and support of a navy for the 
protection of trade and the defence of the coasts, and to other 
public and general purposes for the common benefit of the States? 
New Jersey had felt the force of conflicting regulations in the 
colonial daysS, and was destined to do so again, because of the 
very weakness which it criticised in the Articles of Confedera¬ 
tion, No heed was paid to this most timely warning. At that 
time, however, the necessity of delegating this power to the 
Federal government was not understood. The commercial states 
considered that it would be profitable for them as importers to 
levy contribution on their less fortunate neighbors. The people 
generally did not appreciate that, without some central authority 
to regulate the entire body of trade uniformly, the conflicting 
regulations of different States inevitably would spell the doom 
of the Confederation. 

On June 36, 1778, a copy of the Articles of Confederation, 
engrossed for ratification, was prepared. It was ratified by all 
the states except Delaware and Maryland in 1778; by Delaware in 
1779, and by Maryland on March 1, 1780. On that date its rati¬ 
fy i_caj; i^n_was_announced__by Congress3,_____ 

^ Journals of Congress IV, 269,270; The United States Constitu¬ 
tion, Curtis, Vol.1,130. 

2 American Colonies, Osgood, 11,187-190; New York Colonial Docu¬ 

ments, III, 389,428; New Jersey Archives, first series,I, 

524-527,535,537,540;II, 136-138, 178,179,200,218-221,227-228. 

3 Secret Journals, 410,418,423, 424, 426. 



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- 54 - 


Power of Congress to Regulate Interstate 

and Foreign Commerce, under the Articles 

of Confederation . 

The style of the confederacy was declared by the first 
article to be "The United States of America”. The second arti¬ 
cle declared that eaoh State retained its sovereignty, freedom 
and independence, and every power, jurisdiction, and right whic) 
was not expressly delegated by the confederation to the United 
Spates in Congress assembled. By subsequent,articles, Congress 
was given the power of regulating trade with the indians, of 
sending ambassadors to foreign countries and receiving similar 
representatives of foreign governments* of entering into treat- 
ied and alliances with foreign countries, subjest to the limi¬ 
tation that "No treaty of commerce shall be made, whereby the 
legislative power of the States shall be restrained from im¬ 
posing such imposts and duties on foreigners as their own peo¬ 
ple are subjected, to, or from prohibiting the exportation or im¬ 
portation of any species of goods or commodities whatsoever". 1 
• : This limitation was qualified to the extent that .the States were 
prohibited from laying "imposts or duties, which may interfere 
4 with any stipulation in treaties, entered into by the United 
States in Congress assembled, with any king, prince or state, in 
pursuance of any treaties already proposed to Congress, to the 
Courts of France and Spain". 2 The States were pestrained from 
entering into treaties, confederations or alliances without the 
consent of Congress. 

As the power to regulate interstate and foreign commerce 
was not expressly delegated to Congress, it was reserved to the 
individual states, under the second article. In the negotiation 
of commercial treaties GTongress could only agree that the im¬ 
posts and duties as laid by each State • should be uniform as be- 

1 Articles of Confederation, Article IX. 

® Articles of Confederation, Article VI. 






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- 55 - 


tween the trade of its inhabitants and those of the nation with 
which the treaty was made. No uniformity as between the thir¬ 
teen states could be guaranteed. 

T he British Orders in Council of 1783 . 

In most of the States the imposition of duties and imposts 
was discontinued during the Resolution. In 1780 the States be¬ 
gan to restore these measures. With peace came the necessity 
of providing for the current expenditures of government and the 
liquidation of war debts. 

In fifcrch 1783, William Pitt, Chancellor of the Exchequer 
of the British Government, sponsored a bill in Parliament for 
the regulation of commerce between Great Britain and the Ameri¬ 
can States, which was based on liberal principles. It proposed 
to open the ports of England to American ships, provided that 
American goods should pay duties equivalent to those borne by' 
British goods transported in British ships, and permitted the 
Americans, to engage in trade with the West Indies. If this bill 
had been passed, peace and harmony tetween the United States and 
Great Britain would have resulted. But the members of Parlia«.vtt; ; 
ment doubted that the States would ever be united in harmony, 
because of the contrary commercial interests among them, and 
the lack of power in the central government. They feared tp 
srommit themselves to a definite policy in rdsppct of thirteen 
States, the regulations of which were not uniform, and varied 
from day to day. Hence the bill was rejected. 

The policy of the British Government during the Colonial 
period had created a demand in America for English goods. At¬ 
tempts were made to inaugurate trade with France.and other 
countries of continental Europe, which, generally speaking, were 
unsuccessful. There were some exports of rice, tobacco and fish. 
But the ports of continental -Etirope had been closed to American 




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- 56 - 


shipping so long that little demand existed for their goods* 

The principal trade was with the West Indies,1 This trade was 

necessary io order to pay for English manufactures. The whale 

< 

fisheries and the Newfoundland tanks were the nurseries of Brit¬ 
ish seamen, if foreigners were permitted to carry whale oil to 

England and fish to the west Indies, this would oocasion a tre- 

2 

mendous reduction in British shipping. Great Britain, app¬ 
rehensive that, under the new form of government, the maritime 
power of the American States might increase to an extent which 
would interfere with its carrying trade, determined to guard 
against that contingency by means of severe repressive measures? 
Aecordingly, on July 2, 1783, Orders in Council were issued pro¬ 
hibiting trade with the British West Indies in American vessels, 
and forbidding the carriage of fislv beef, pork and other im¬ 
portant American commodities to those colonies, even in Brit¬ 
ish bottoms. 4 This prohibition was continued by temporary acts 
until 1788, when it was permanently established by act of Parlia¬ 
ment. 5 These regulations were issued "in full comfidence that 
the United States cannot agree to act as one nation" .6 

Measures of Retaliation Adopted 
by the States. 

The states were righteously indignant, The series of re- 
strictive measures enforced by Parliament from 1651 down to the 
Revolution had succeeded rather well in confining the trade of 
the Colonies to British possessions. During the Revolution there 

wa_s 1.it_tl_e_ 0 £p_ortuni_ty_to develop new marketsFranj3e__had__made a 

^-History of the United States McMaster,Voi,L,206; American Com¬ 
mercial Legislation before 1789, GIesecke,123, •' 

2 History of the United States, McMaster, Vol.1,238. 

3 The Federalist, XI 

4 .History of the United States Constitution,Bancroft,Vol. 1,146; 
The United States Constitution,Curtis,Vol.I,284;Political and 
Civil History of the United States, Pitkin,Vol.II,191. 

5 Political and Civil History of the United States,Pitkin,Vol., 

II,191. 

6 John Adams to Congress, Diplomatic Correspondence,VII,81,88, 

100; History of the United States Constitution,Bancroft,Vol. 

I 146; The Origin and Growth of the American Constitution, 
Taylor,168. 




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some concessions, but the trade of the Colonies had not learnec 
its way to that country. The avenues of British commerce now 
being closed to them, trade dropped almost to nothing. ^ 

The first thought was reprisal. Higher duties were pro¬ 
vided on goods imported in British vessels. The New England 
Colonies, Connecticut excepted, were most active in discrimina¬ 
ting against British shipping. Connecticut adopted a policy 
off free trade toward Great Britain.2 in New Hampshire, Mass¬ 
achusetts and Rhode Island, proMbition was laid upon the load¬ 
ing or unloading of commodities produced in the United States 
by British ships. In Rhode Island this regulation forbade the 
entry of British ships into ports of that state.^ New York, 
Maryland, Virginia dnd North Carolina joined actively in lay¬ 
ing discriminatory duties against the British. 4 In New York 
higher duties were to be imposed upon goods imported from Rhode 
Island, Connecticut, New Jersey or Pennsylvania, unless it coulo 
be shown to the satisfaction of the Collector that they had 
not originated in England.5 Some of these discriminations ex¬ 
tended to all foreign shipping. Maryland and Virginia laid ex¬ 
port duties on wheat, flour and tobacco.^ In 1787, upon cony- 
plaint of Dutch merchants, Virginia placed goods imported in 
Dutch ships and those of other countries having commercial treat 
ies with the United States upon the same basis as goods import¬ 
ed in vessels of any of the States. 7 

^ History of the United States, MeMaster, Vol.1,206. 

2 Collection of Papers on Navigation and Trade (1807)57,58. 

3 New Hampshire State Papers,XX,502;Poiitical and Civil History 

of the United States,Pitkin,Vol.II,192;Colonial Records of 
Rhode Island,X,106,121,14l£ 

4 Laws of New York(1785)Chapter 7;Chapter 34;Laws of Maryland, 

(1765-1784)Chapter 29;Hening,Statutes,(Virginia)XII,290;State 
Records of North Carolina,XXIV,718. 

5 Laws of New York( 1785)Chapter 34. 

6 Hening,Statutes,(Virginia)IX,162,361,55};XI,95,201; XI1,288; 

Laws of Maryland(1765-1784)Chapter 18,1777£Chapter 50,1782; 
Chapter 84,1784; Calendar of Virginia State Papers,IV,80. 

7 Hening, Statutes, XII,290. 



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-58- 


Man y things combined to render these reprisals unsuccess¬ 
ful. There was no uniformity in the attitude of the States to¬ 
ward the British. While many of them laid heavy and discrimine 
ting burdens on British shipping, Connecticut invited British 
trade by a free trade p©licy, and New Jersy, Delaware and South 
Carolina adopted a passive attitude. Moreover, the expectations 
as to intercourse with other nations fell absolutely fiat. 

Trade with Engladd was so well established that it could not 
be tftrpttled. The people of the States had believed 
that their industries would enable them tp produce the means 
of paying for foreign goods as of old. But the trade with the 
British West Indies was obstructed, and there was no market for 
rice, tobacco, pitch, turpentine and ships. Moreover, British 
traders, immediately upon the signing of the Peace treaty with 
Great Britain, had established themselves in the Colonies, and 
were able to import English goocB at such low prices that native 
merchants, unable to compete, were crushed. 

With hundreds of English ships in the American carrying 
trade, the British press, backed by the government, succeeded 
rather well in convincing the other nations of Europe that, 
trade with the United States was not worth while. 1 

In this situation the commercial towns of the northern and 
central states began to coirpl&in bitterly. Congress was urged 
to change its barren discussions for efficient remedies. 

On January 11, 1785, at a meeting of merchants and mer- 
chanics of New York, held to welcome the opening session of Con¬ 
gress in that city, it was resolved: "We hope our representa¬ 
tives will coincide with the other States in augmenting your 

1- History of the United States, McMaster, Vol. 1,225. Jeffer¬ 
son to Monroe, August 28, 1785,"The English papers are so in¬ 
cessantly repeating their lies about the tumult, the anarchy, 
the bankruptcies, and distress of America, that these ideas 
prevail very generally in.Europe." 






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-53- 


power to every exigency of the union.” The Chamber Of Commerce 
of New York likewise requested Congress to act so as to pro¬ 
tect the commerce of the United States from the injurious 
foreign acts to which it was sujected. 1 

The main source of the prosperity of Massachusetts always 
had been the fisheries and shipping. The restrictions laid by 
the British Orders in Council had destroyed both these avenues 
of trade. Moreover, the swarms of British traders which congre¬ 
gated in Boston? had been able to import English goods so cheap¬ 
ly as to drive native importers from business. The merchants 
of Boston, roused to action, met on April 15, 1785, and pre¬ 
pared petitions to Congress and the Legislature of Massachusetts. 
The petition to the legislature urged that the attention of 
the delegates in Congress be directed to the state of affairs 
existing in Massachusetts; that to Congress- set forth the dif¬ 
ficulties with which the tradesmen of Boston were beset. As 
usual, the men of Massachusetts realized the inportance of 
united action, in dealing with the situation. They established 
a Committee of Correspondence, to communicate with and induce 
the merchants of every sea-port in the nation to take similar 
action. They concluded by pledging themselves not to purchase 
goodssfrom British merchants trading in the United States. A 
meeting of citizens, held at Faneuil Hall on April 18 of the 
same year, bound themselves not to purchase goods of resident 
British factors, and entreated Congress to take steps necessary 
T 

History of the United States Constitution, Bancroft, 186; 

MS volume of Remonstrances and Addresses, 343,351. 






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-60- 


for their relief.1 On May 3, 1785, the mechanics of Boston 
met and adopted resolutions coinciding substantially with 
those drawn up by the merchants bn April 15.2 

Beginning on June 2, 1785, the citizens of Philadelphia 
assembled in continuous convention for eighteen days, and 
passed ^-resolutions declaring that relief from the burdens 
under which American trade lanquished could only be realized 
by granting Congress full power over the commerce of the 
c ountry .^ 

^hile these various resolutions were doomed to immed¬ 
iate failure, eventually, augmented by the unanimous will of 
all the States, they were destined to achieve complete success. 
But the States were not yet ready to abandon the sovereignty 
so lately wrung from the British crown even in the interest of 
their own welfare. They were apprehensiwe that if the power 
to regulate commerce, were granted to Congress, it might be 
exercised to their detriment. They feared that this would 
render the transition from dependence to sovereignty a matter 
of mere form, the exactions of Congress being substituted for 
the tyrannies of Parliament. 4 

The Regulation of Interstate Commerce 
under the Articles of Confederation. 


It has been observed that, during the period of the Con¬ 
federation, the regulation of foreign commerce was far from 
uniform. When Massachusetts started the movement for -re- 


1 History of the United States Constitution, Bancroft,188. 

S Boston Gazette,May 9, 1785; History of the United States, 
McMaster, Vol.I, 255. 

^ History of the United States Constitution, Bancroft,187. 

4 The Federalist, Scott, Essays on the Constitution. Letters 
of Agrippa, James Winthrop,5«§9: "They (Congress) have 
indeed very nearly the same powers claimed formerly by 
the British Parliament. Can we have so soon forgot our 
gloricus , struggle with that power, as to think a moment 
of surrendering it now?" 




' -* 


« 




-61- 


taliation against the British Orders in Council by closing its 
ports to British vessels, Connecticut, influenced by motives of 
self-advancement, declared its ports free. Moreover, immediately 
thereafter, that state laid duties on goods imported from Mass¬ 
achusetts.' 1 ’ The attitude adopted by Delaware, New Jersey and 
South Carolina was hardly less blameworthy. As a reshlt, the 
force of the restrictive measures of Massachusetts and the other 

commercial States upon British shipping was lessened, to the 
great % detriment of their commerce and trade# 

The tariff legislation of the States was actuated by mo¬ 
tives of revenue, protection and discrimination. In addition to 
-the disabilities imposed upon British trade, duties were laid to 
encourage manufactures and to discriminate against other States. 
While the necessity of providing an adequate revenue probably 
furnished the chief reason for tariff legislation, discrimina¬ 
tion constituted an important motive. The policy of protection 
was in its infancy, and ordinarily, duties imposed for that pur¬ 
pose were merely incidental. 

Massachusetts provided mojye complete protection to indus- 

/ 

1 

Calendar of Virginia State Papers, IV, 60,61; Madison,- 
Forks, I, 216. 










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tries than any other State. 1 Pennsylvania also passed tariff 
laws intended, primarily, for the protection of iron, steel, 
leather, hats, books, and lumber for shipbuilding, ^ The Pennsyl¬ 
vania statute is important, since it constituted the basis for 
the first Federal tariff legislation. New Hampshire, Rhode Is¬ 
land and New York also imposed duties for incidental protection.3 

The navigation laws of Maryland, Pennsylvania, New York and 
New Jersey regarded the citizens of other States as aliens.^ 

The power to tax the produce of adjoining; States, exported 
through maritime towns, was often exercised oppressively. Vir¬ 
ginia and South Carolina taxed the tobacco of North Carolina, 
Pennsylvania taxed the products of Maryland, New Jersey and Dela¬ 
ware, New York taxed the products of Connecticut and New Jersey. 
In this .manner, those States which did not possdss accessible 
and convenient seaports were forced to submit to the exactions 
of the more advantageously situated States, through the ports 
of which their produce must be exported. ^ New Jersey and North 
Carolina were particularly unfortunate in this respect. 

The regulations of each State were predicated upon its own 
particular interests, without reference to the manner in which 
they affected its neighbors. Commerce which was encouraged by 
Massachusetts was restricted by Virginia. South Carolina sought 
to promote the exportation of pitch and indigo, but was not in¬ 
terested in furs. New York, bn the other hand, was disinclined 
to protect the trade in pitch and indigo, but was deeply con¬ 
cerned in the fur trade. The bulk of the revenues of New Eng¬ 
land was derived from lumber, fish and oil, while Pennsylvania's 
chief interest lay in iron, corn and grain. The prosperity of 

1 Laws of Massachusetts, 1783-1789-149,300,539. 

2 Laws of Pennsylvania, 785, 669. 

3 Laws of New Hampshire, 1776-1789,153,159; Colonial Records of 

Rhode Island,X,89,106,115,150; Laws of New York,March 33, 

1784, Chapter 10; November 18,1784,Cahpter 7; April 11,1787, 

Chapter 81; March 13, 1788, Chapter 73, 

4 Journal of the Federal Convention,Madison,(Scott) 46-47. 

3 Journal of the Federal Convention,Madison, (Scott) 46,47. 




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their neighbors was not, in any sense, a matter of concern with 
the individual States. 1 

Some of the States discriminated by laying higher tonnage 
duties on goods when transported in vessels belonging to cit¬ 
izens of other States than were imposed on similar goods when 
carried by vessels belonging to aitizens of the legislating State 

In 1787, at a meeting of merchants of Portmouth, Va., it was 
declared that the high tonnage duty in force would effectually 
stop the carrying trade from Maryland and Carolina, "as the ton¬ 
nage on small vessels would frequently amount to as much as the 
freight of their cargoes". #3 

The exactions of one State frequently brought forth onerous 
retaliatory measures from other States. The State of New York 
was particuiary selfish and blameworthy. The city of New York 
had long received firewood from Connecticut, and butter, cheese, 
poultry and vegetables from New Jersey. This trade carried con¬ 
siderable sums out of the city and "into the pockets of detested 
yankees and despised Jerseymen. " As a remedy for this, the New 
York Legislature in 1787 enacted that every boat, of more than 
twelve tons burden, engaged in bringing supplies from New Jersey, 
should be entered and cleared at the custom house in the same man¬ 
ner as vessels from foreign ports; that boats from Connecticut, 
should pay entrance fees and increased dockageJ. and that the cart¬ 
ing of firewood across the city of New York should be heavily tax¬ 
ed. These taxes made heavy inroads on the profits of the pro¬ 
ducers in both Connecticut and New Jersey. They complained bit¬ 
terly to the New Yorkers, but to no effect. The state of New Jer- 

1 History of th6 United States, McMaster, Vol.1,206. 

2 Calendar of Virginia State Papers,IV,169; Colonial Records of 

Rhode Island,IK,708; Cooper, Statutes of South Carolina,IV, 
582,593,621; Hening, Statutes of Virginia, XI,70,121. 

3 Calendar of Virginia State Papers, IV,240. 











.6 4- 


sey found a mean® of .retaliation. A short time before the city 
of New York had built a lighthouse upon a small piece of land 
which it had acquired at Sandy Hook, In New Jersey. A tax of 
$1800 per annum was laid upon this property by the legislature 
of New Jersey.^ The Legislature of Connecticut having taken 
no action, the business men ofMew.London, being highly incensed 
at the action of New York, formed a league, and agreed, under pc■ 
penalty of $250, not to send-into New York any article whatsoever 
nor to furnish any craft bound to that state with any kind of lad 
ing for the period of one year from July 30, 1787.2 

The Treaty power of Congress under the Articles of 
Conf ederation. . 

Shortly after the ratification of the treaty of 1784 with 
England, Congress turned its attention to the question of com¬ 
mercial intercourse with foreign nations, "^hile the sole powef> 
of negotiating treaties rested in Congress, the full provisions 
of treaties entered into with.foreign nations could not be 
guaranteed as the States might, by]]^gx e x a tive action, destroy 
the effect of treaty provisions. The conduct of several of the 
States invalidated certain provisions of the treaty of 1784 with 


1 Letter from Brunswick, in American Museum, December, 1787,601; 
History of the United State, McMaster,405; Critical Period of 
American History, Fiske, 146; American Commercial Legislation 
before 1789, Giesecke, 135. 

2 Pennsylvania Gazette, June 27, 1787; History of the United 
States, McMaster, 405; Critical Period of American History; 
Fiske, 146; American Commercial Legislation before 1789, 
Giesecke 135, 




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-65- 


England. 1 

In 1778 a treaty of amity and Commerce had been concluded 
with France. Under the Confederation, Congress appointed com¬ 
mercial agents abroad and secured commercial treaties with Hol¬ 
land in 1783, Sweden in 1783, and Prussia in 1785. 2 Congress 
expected to create new markets in continental Europe by these 
treaties. Reciprocal freedom of trade was attempted, at a time 
when commercial restrictions were the rule. The treaties pro¬ 
vided substantially that each nation should be permitted to 
transport its goods in vessels to ports of the other nation, and 
bring back the goods of the latter in like manner. Tariff dut¬ 
ies were to be on basis of the most favored nation. 

The difficulties under which American commerce labored as 
a result of the British restrictions rendered a commercial trea¬ 
ty with Great Britain of paramount importance. On February 34, 
1785 John Adams was appointed Minister Plenipotentiary to re¬ 
present the United States at London. His instructions were to 
make strong representations to the British Ministry concernirg 
the advisability of removing the restrictions which still throt¬ 
tled American Commerce.^ The British government was unwilling 
to relinquish the commanding advantage which it. held over Amer¬ 
ican trade., by mans of the restrictions imposed by Orders in 
Council. The inability of Congress to enforce commercial treat¬ 
ies provided an excellent pretext upon which &ny. government, 
which had other more substantial reasons not proper to be dis¬ 
closed, might base its refusal to enter into such engagements 
with the United States. On March 36, 1785, the Duke of Dorset, 

1 The United States Constitution, Curtis Vol.l, 179. 

Treaties and Conventions of the United States (1889) 396-306, 
749,899,1043. 

Secret Journals, Vol, 3, 535, 536. 


3 



I 



- 66 - 


writing 'to Franklin, Adams and Jefferson, the American Peace 
Commissioners, inquired "what is the real nature of the powers 
with which you are invested, whether you are merely commissioned 
by Congress, or whether you have received separate powers from 
the respective States *** The apparent determination of the 
respective States to regulate their own separate interests ren¬ 
ders it absolutely necessary, toward forming a permanent system 
of commerce, that my court should be informed how far the Com¬ 
missioners can be duly authorized to enter into any engagements 
with Great Britain, which it may not be in the power of any ofie 
of the States to render totally useless and inefficient."1 This 
polite inquiry was unanswerable. Congress could provide no 
guaranty that the states would observe treaty provisions, The 
Commissi oners of the United States were not empowered to execute 
treaties on behalf of the States, as such. Hence, the commercial 
engagement of greatest importance to the union at that time was 
deferred, by virtue of one of the fundamental defects in its form 
of government. 

Ineffectual efforts were made to secure a commercial treaty 
with Spain, chiefly due to the fact that that Nation consistently 
refused to agree that vessels of the United States might navigate 
the lower courses of the Mississippi River, ^ 

The efforts of Congress to secure Commercial engagements 
with foreign nations during tthis period were foredoomed to fail¬ 
ure. Nations declined to bind themselves with a party not cap¬ 
able of being held to its obligations. As Washington observed, 
the attitude of America must have appeared contemptible to those 

^ Diplomatic Correspondence 1783-1789,11,297. Constitutional 

History of the United States, Von Holst, 42, 

2 Secret Journals, Vol 3, 517; Political and Civil History of the 

Uni ted States, Pitkin, Vol II, 206. 








- 67 - 


nations with which treaties were attempted . 1 Generally speaking, 
the treaties which were negotiated proved of little value. On 
the other hand, treaties with England and Spain would have 
opened British ports to American shipping and provided an out- 
let for the Mississippi Valley. 

Atte mpts of Congress to ser.nrP. additional 

powers under the Articles of Confederatio n. 
to regulate Commerce . 

Hardly was the ink dry on the Articles of Confederation, 
when discerning minds realized their impotence. The power of 
Congress was merely recommendatory, even on questions of finance, 
and an affirmative vote by every State was required to transform 
the recommendations of Congress into effective measures. In 
meeting the exigencies of the times Congress resembled a high- 
class debating society more than the central regulating author¬ 
ity of a nation. 

On February 3, 1781 Congress rejected a motion by Mr. With¬ 
erspoon, affirming that "it is indispensibly necessary, that the 
United States, in Congress assembled, should be vested with a 
right of superintending the commercial regulations of every 
State, that none may take place that shall be partial or con¬ 
trary to the common interests."** Upon the same day, however, a 
resolution was adopted by Congress recommending to the states 
that it be granted authority to lay a duty of five per cent on 
goods of foreign growth or manufacture, imported into United 
States, with the exception of articles imported on account of the 
United States, and wool-cards, cotton cards, wire used in making 

Life of Washington, Marshall, V, 73; North American Review, Oct¬ 
ober 1827, 257, 258; A^chesons Collection of Reports, 55. Story 
on the Constitution, Vol I, Paragraph 261. "America (said Wash¬ 
ington) must appear in a very contemptible point of view to 
those with whom she was endeavoring to form commercial treaties 
without possessing the means of carrying them into effect. They 
must see and feel that the Union, or the States individually, 
are sovereign, as best suits their purposes. In a word that 
we are a nation to day, and thirteen to-morrow. Who will treat 
with us on such terms?" 

Gibbons v. Ogden, 9 wheat, 1, 225. 










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-63- 


them, and salt.l The proceeds from this duty were to be used 
in payment of the debts contracted during the Revolution on the 
credit of the United States. While the motion which was lost 
contemplated the regulation of commerce, the recommendation of 
Congress was intended merely as a means of raising fevenue. An 
urgent letter accompanied the resolution to the States, indica¬ 
ting the necessity of providing revenue for purposes of govern¬ 
ment. Most of the States replied affirmatively within a com¬ 
paratively short time. By 1782 all had approved the resolution 
except Georgia and Rhode Island. They were requested to re¬ 
turn a definite answer immediately.^ The response of Georgia 
assured favorable action by that state. On November 1, 1782, 
the assembly of Rhode Island refused to give its assent to this 
augmentation of the power of Congress on the ground that: (l) 
Such an impost would burden the commercial states most, and 
would bear particularly hard on Rhode Island; (2) It would i,n- 
volve the creation of officers unknown to the Confederation; 

(3) Because a revenue for which Congress was not accountable to 
the States would render that body independent of its constitu¬ 
ents, and would be dangerous to the liberties of the United 
"States. On November 30, 1782 this intelligence was communicated 
to Congress. ^ As the other States had conditioned their as¬ 
sent upon similar action by all the States, the attitude of 
Rhode Island effectually precluded the exercise of this very 
necessary power by Congress. 

1 Journals of Congress (1800) VII, 22. 

2 Journals of Congress, VII, 370. 

^ Records of Rhode Island, IX, 682, 683, 684; The Origin 
and Growth of the American Constitution, Taylor, 156. 




-69- 


On April 18, 1783, Congress recommended to the States, as 
"being indispensibly necessary to the restoration of public 
credit, and to the punctual discharge of the public debt," that 
it be clothed with authority to impose certain specified duties 
on spirits, wines, teas, pepper, sugar, molasses, cocoa and 
coffee, and an ad valorem duty of five per cent on all other 
goods. The duty was troche applied exclusively to the payment 
of the principal and interest of the public debt, and was to 
cease at the expiration of twenty five years, if by that time 
the public debt had been totally extinguished. The States were 
to be required, moreover, to establish effective measures of 
such character as each should deem advisable, for the purpose of 
providing revenues aggregating #1,500,000 per annum for the use 
of the United States, exclusive of duties on exports, the pro¬ 
portionate part to be borne by each state being fixed in accord¬ 
ance with the Articles of Confederation. This proposition was 
to take effect when assented to by all the states.^ A letter 
prepared by Madison^amilton and Ellsworth, answering the ob¬ 
jections to the recommendation previously made for an impost 
and urging the imperative necessity of adopting the present 
measure, accompanied the resolution to the States.^ The States 
never accepted this plan in such manner as to render it operative, 
A jealousy had grown up between the state and general govern¬ 
ments. The States considered their individual interests para¬ 
mount to the welfare of the United States as a whole. Some of 
the States laid heavy contribution on the trade of neighbors 
forced, by disadvantages of geographical location, to use their 
ports. These advantages they were reluctant to relinquish. By 
1786 all of the States but New York had assented to the measure. 
The legislature of that State, in regular session, had reserved 

1 Journals of Congress, VIII,139. 

2 Journals of Congress, VIII,145-1501 





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-70- 


to itself the right of 'levying duties in accordance with a law 
passed in 1784. As the consent of New Y.ork alone was lacking to 
render the measure effective, Congress requested Governor Clin¬ 
ton to convene the legislature in special session, for the pur¬ 
pose of considering it. This he declined to do, upon the ground 
that his authority £o convene the legislature was confined to 
extraordinary occasions, and as the resolution had but recently 
been considered by the legislature, no such occasion existed. 

To a second urgent request, he returned the same re joinder.^ In 
this manner, the selfish action of a single State again proved 
sufficient to prevent the exercise by Congress of a legitimate 
power of government. 

In 1783 Maryland had instructed its delegates in Congress 
to ’’agree and ratify” measures empowering that body to prohibit 
the importation of foreign goods in vessels other than those own¬ 
ed and rmvi gated by citizens of the United States.^ In December 
1783, Virginia had authorized Congress to prohibit importations 
of goods of the growth or produce of the British West Indies into 
the United States in British vessels, "or to adopt any other 
mode which may effectually tend to counteract the designs of 
Great Britain, with respect to the American commerce, so long as 
the said restrictions shall be continued on the part of Great 
Britain." 3 In 1784, South Carolina enacted similar legislation, 
but conditioned ifc upon like action by all the states.4 

On April 20, 1784, Congress took action toward securing 
power to protect American commerce from further British aggression 
A recommendation w[as submitted to the States, that Congtress be 
granted power to prohibit, for a period of fifteen years, the im- 

Journals of Congress, XI, 133, 145. 

2 Laws of Maryland, 1765-1784, Chapter 29 (December Session) 

3 Hening, Statutes, XI, 313. 

4 ^.Cooper, Statutes, IV, 596. 



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-71- 




portation to or exportation from the United State, of goods in 
vessels belonging to or navigated by subjects of any power which 
had not entered into commercial treaties with the United States], 
and to forbid, the importation into the United States by subject 
of any foreign nation, of goods or merchandise, not the produce 
or manufacture of the dominions of their own sovereign, unless 
authorized by treaty. The approval of nine States was re¬ 
quired to give effect to this proposition. 1 While the preced¬ 
ing resolutions of Congress, relative to the imposition of dut¬ 
ies, were intended primarily as instruments of the taxing powe?, 
this last recommendation contemplated an exercise of the power 
to regulate trade. During the consideration of this resolution, 
many expressions favorable to it were transmitted to Congress. 
Town meetings at Philadelphia and Boston championed the grant to 
Congress of full power to regulate commerce. 2 Governor Bowdoin 
in his message of May 31, 1785 to the Legislature of Massachus¬ 
etts suggested that the States appoint delegates to determine 
the precise power which should be granted to Congress over com¬ 
merce. Thereupon, the Legislature resolved that the States 
should appoint delegates to convene for the purpose of revis- 
ir^ the Articles of Confederation. The Navigation Act of Mass¬ 
achusetts, passed in 1786, and designed to countervail the 
British restrictions on American Shipping, was described as "a 
temporary expedient; until a well guarded power to regulate 
trade shall be entrusted to Congress". 3 This time the States 
carefully guarded their assent with conditions which rendered 
unanimous, action unlikely. Massachusetts, New York, New Jersey 
1 Journals of Congress, IX, 133, 134. 

3 History of the United States Constitution, Bancroft, 187, 

188; Journals of Congress, 1 May 1785 M. S. 

3 Governor Bowdoin's Circular of July 28, 1785, enclosing Mass¬ 
achusetts Act; Annual Register, XXVII; Pennsylvania Packet, 
July 18, 1785; History of the United States Constitution, Ban¬ 
croft, 191. 








1 


-73- 

and. Virginia passed acts granting the power, hut suspended them 
until the other States had assented; New Hampshire limited its 
approval to fifteen years; Rhode Island and North Carolina gave 
Congress power over imports only; Delaware, South Carolina and 
Georgia fixed other dates for die c ommencernent of the new system; 
Connecticut, Pennsylvania and Maryland took no action. Thereupon, 
Congress again presented t he resolution to Connecticut, Pennsyl¬ 
vania and Maryland, with a request that definite action be taken, 
and urged NewHampshire, North Carolina dnd Rhode Island to re¬ 
consider their formeracts.l By October 1786, all of the States 
except New Hampshire and North Carolina had granted the power to 
Congress, in the manner in which it had been leqassted, Again C<an- 

p 

gress urged the delinquents to grant their approval. Again, Con¬ 
gress was denied the power which it needed to regulate the affairs 
of government. 

At various times other measures calculated to secure revenue 
and promote uniformity in the regulations of thedifferent States, 
were discussed by Congress, James Monroe proposed io limit T$he 
right of a State to lay import duties on goods from other States, 
and to grant Congress power to regulate f oreign c ommerce" by lay¬ 
ing import and export duties. These propositions were debated in 
Congress on July 14, 1785. They were supported c hiefly by the 
Northern States, v Eventually, however, nothing came of them. 

The attempts of Congress to s ecure "he power of taxation 
followed unsuccessful attempts to collect die quotas apportioned 
to the States to co-verfhe necessary expenditures of government^ 
Compliance with Congressional requisitions grew more lax, until 
in 1786, a committee of Congress reported that any further re¬ 
liance on requisitions would be "dishonorable to the understand- 

1 

Journals of Congress, XI, 31,32. 

2 Journals of Congress, XI, 189, 190. 

3 Hamilton, Writings of Monroe, I, 68, 80-83, 101, 













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-73- 


ing of those who entertain such confidence.”! In February 1787, 
Hamilton, addressing the Legislature of New York, said in part: 

”T£e pecuniary support of the Federal government has of late 
devolved almost entirely upon Pennsylvania and New York. If 
Pennsylvania refuses to continue her aid, what will be the situa¬ 
tion of New York? Are we willing to be the Atlas of the Union? 

Or are we willing to see it perish." 

Events were marching swiftly toward the Constitution. 

Defects of the Articles of Confederation . 

The Confederation was formed under the most unfavorable cir¬ 
cumstances. The Colonies had been engaged in a long and bitter 

struggle against the authority of the British Crown, during xvhich 

/ 

they had experienced $ in the most'practical way, the force of the 
restrictions imposed by the mother country. These continual 
struggles had created in them a strong feeling of resistance to 
all external or centralized authority, and an equally ardent de¬ 
sire to rule themselves through their colonial assemblies. Hav¬ 
ing but recently thrown off the shackles of a corrupted monarchy, 
"in the eyes of which they lived but to serve, they could not brin 
themselves to surrender so readily, even to a congress of then>- 
selves and their neighbors, that which they had won with so much 
-sacrifice and effort. Their union, far from being the conception 
of deliberate choice, was formed in haste to oppose with united 
strength, the measures undertaken by Great Britain. Thrown to¬ 
gether thus, for mutual protection and support, they found them¬ 
selves conpelled to delegate some of their sovereign powers to 
the central regulating body which they had established in such a 
summary manner. With the army of the enemy spreading desolation 
everywhere, they had little time to deliberate as to the ultimate 
effect of their union upon domestic peace or political security. 

^ Journals of Congress, IV, 619. 







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- 74 - 


Wit h their shipping swept from the seas and trade demoralized, 
they could scarcdly foresee the result of existing regulations 
upon commerce of the future, which had no counterpart in the past. 

when peace was at hand, they yearned for the full measure of 
the freedom they had won. They knew the intrinsic worth of lib¬ 
erty much tetter than they understood the blessings of representa¬ 
tive government. They opposed augmenting the powers of Congress 
for reasons very similar to those they had advanced in resistance 
to the encroachments of Parliament. Jealous of the Congress, they 
chose to retain the material benefits incident to undivided state 
sovereignty. It required time and bitter experience to demonstrate 
that in return for the. powers delegated to Congress, material re¬ 
sults in increased proportion would redound to them individually. 
,?r hen this lesson was learned, they were prepared for the transi¬ 
tion from the Confederation to Constitutional Union. 

In 1785, Washington expressed his opinion of the Articles of 
Confederation in the extremely significant statement which follows: 

"In a word, the confederation appears to me to be little more 
than a shadow without the substance; and Congress a nugatory body, 
their ordinances being little attended to."l 

The fundamental defect in the Articles of Confederation was 
the inability of Congress to execute any of the powers declared by 
t^iat document to be vested exclusively in it.2 There was an en¬ 
tire absence of coercive authority to effectuate its own con¬ 
stitutional measures.3 Congress possessed no power to enforce 

4 

obedience, or ptlnish disobedience to its laws. No express authori- 

^ Life of Washington, Marshall, 64; North American Review, October 
1827, 249,254, 256; 259} Political and Civil History of the 
United States, Pitkin, Vol.II, 217.. 

2 1 American Museum, 1786, 270; 3 American Museum 554, 556. 

^ 1 Jefferson's Correspondence, 63, 

^ 1 Kent's Commentaries, 200. 






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-75- 


ty to exercise force was delegated to Congress, and sucheauthori- 
ty as might ordinarily have been implied was expressly prohibit¬ 
ed, for each State was to "retain every power, right and juris- 
dictionjnot expressly delegated to Congress"^. 

One of the most important general powers not expressly dele¬ 
gated to Congress, and the absence of which placed that body at 
the mercy of the States, was the power to lay and collect £axes. 
Another evil resulted from the fact that while the treaty-making 
power rested exclusively with Congress, that body could not com¬ 
pel the observance of treaty provisions by the States. The chief 
defect was, however, the lack of power in Congress to regulate 
interstate and foreign commerce. During the Revolution, this 
deficiency was not felt to any considerable extent, because trade, 
except in munitions of war, had practically disappeared from 
American ports. But the advent of peace, bringing in its train 
the resumption of commerce and trade, early foredoomed regulation 
by thirteen independent sovereignties. It would be idle to sup¬ 
pose that thirteen independent communities differing in climate, 
location and produce would concur in uniform regulations design¬ 
ed primarily to benefit the whole and not certain of its parts. 
Moreover, this matter had hot been worked out to its logical con¬ 
clusion when the Colonies, in order more effectively to bear the 
brunt of the war, formulated the Articles of Confederation. It 
was a situation which could not be appreciated until its practi¬ 
cal results were realized. If Congress had been given authority 
to regulate commerce, the power of levying taxes would not have 
been so vital, for the regulatory power might well have embraced 
the incidental right to lay duties.2 

^ The Federalist. XXI. 

2 

Constitution of the United States, Tucker, Vol.II, Para. 252. 



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- 76 - 


While Congress might devise budgets and make requisitions 
upon the States, it had no power to compel their payment. Inde¬ 
pendence once established, the States evaded the obligations im¬ 
posed by Congress, until by 1787, their conduct in this respect 
had become notorious.^* This fact, coupled with the inability of 
Congress to guaranty the observance of treaty obligations by the 
states brought the representatives of the Federal government into 
disrepute abroad. Foreign nations were unwilling to enter en¬ 
gagements with a government which had such slight assurance of 
permanency.3 Moreover the impotence of Congress created unrest 
and dissention at home. The collapse of the Union was freely 
predicted. 3 

Each of the thirteen States regulated commerce to suit its 
best interests, irrespective of the injurious consequences to 
which neighboring states might thereby be subjected. This sel¬ 
fish policy occasioned continual petty vexations and jealousies, 
which embittered the States one toward the other. If the legisla¬ 
tion of the states had been confined to domestic regulations, the 
harm to American commerce as a whole would not haveebeen sub¬ 
stantial. But their restrictions applied equally to commerce 
with foreign nations. If the American flag was to remain on the 
high seas, it was absolutely essential that some.uniform policy 
should be adopted toward the Navigation Acts of Great Britain. As 
subsequent events proved, the remedy lay in the abrogation in toto 
of the Articles of Confederation, as they contained so little good 
and so much bad that they did not constitute a safe basis upon 
which to establish a firm government. 

1 The Federalist, XXI,XXII,XXXII; Hamilton to Legislature of 

New York, 1787; Origin and Growth, of the American Constitution. 
Taylor, 157. 

2 Diplomatic Correspondence, 1783-1789,11, 297; Secret Journals, 
Vol. 3, 517; Political and Civil History of the United States, 
Pitkin, Vol. II, 206. 

3 Report of American Historical Commission, 1896,1,717,719,724, 
735,728; Jefferson, writings (Ford edit ion)III,347,351,398; 
Johnston, Correspondence and Public Papers of Jay,II1,178,179; 
Hamilton, writings of Monroe, I, 53-55, 59-,80-86, 97-99. 






-77- 


IV. 

EVENTS le ading to the constitution 
.E arly Compla ints of Virginia, under the Confederation . 

The degraded state of American Commerce, the financial em¬ 
barrassment of the Federal government, the animosities created 
by the commercial wars waged by the States, and over and above 
all, the inability of Congress to act effectively, eventually, 
drew the States together in firmer Union in the Constitutional 
Convention. The trend of events which led to the convention 
was initiated by Virginia, in connection with certain local 
affairs of that State. Gradually, it gained impetus, until in 
the Annapolis Convention five States pledged themselves to a 
system of centralized constitutional government, with distinctly 
enumerated powers and the authority to execute and enforce them* 
In December 1783, Virginia, complaining of "a disposition 
on the part of Great Britain to gain partial advantages injuri¬ 
ous to the rights of free commerce, and repugnant to the prin¬ 
ciples of reciprocal interest and convenience, which form the 
only foundation of friendly intercourse, "1 had, by unanimous 
vote of the Assembly, empowered Congress to adopt the most 
effectual mode of counteracting the restrictions laid by the 
British on American Commerce.3 By direction of the Assembly, 
the Governor of Virginia oommunicated this act to the executive 
authority of the other States, with the recommendation that they 
enact similar measures. 3 He also transmitted a report of what 
had been done to the Virginia delegates in Congress. This 
proved to be the first of a series of ireasures by means of which 

1 Joseph Jones to Jefferson, December 31 and 29, 1783, MSS; 
History of the United States Constitution, Bancroft, 148. 

3 Hening, statutes, XI, 313. 

3 Governor Harrison to the Governor of Massachusetts,December 
25, 1783, MS; History of the United States Constitution, 
Bancroft, 148. 







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-78- 


Virgmia marshalled the American states on their way to a better, 
firmer union. 

The Mount Vernon Commission . 

The Charter of Lord Baltimore had fixed the Potomac River as 
the boundary line between Maryland and Virginia, but had extended 
the jurisdiction of Maryland to its southern bank. In 1776 Vir¬ 
ginia recognized the validity of this charter, and released to 
Maryland all the rights and territory claimed by that state, ex¬ 
cept the free use of the Potomac and Pohomoke Rivers from their 
sources to their mouths. The language of the grant being in 
broad, general terms, was susceptible of a construction implying 
the relinquishment by Virginia of all jurisdiction over the rivers. 
Early in 1784, Madison, traveling along the Potomac had been in¬ 
formed of many flagrant evasions successfully practised by for- .. 
eign vessels loading at Alexandria.^ He communicated this 
intelligence to the Virginia Legislature, and writing to Jefferson, 
then a delegate in Congress from Virginia, ”of the anomalous con¬ 
dition of things on the Potomac,” suggested the propriety of hav¬ 
ing the rights of the two States on that river determined by a 
joint commission. 3 Jefferson found the Maryland delegates favor¬ 
ably inclined toward the suggestion of Madison. 4 5 In June 1784, 
the Virginia legislature appointed Commissioners to meet the Com¬ 
missioners selected by Maryland, for the purpose of agreeing upon 
a common system of regulations for the navigation of the Potomac. 

In the fall of the same year, Maryland appointed its Commissioners 1 

3- History of the United States Constitution, Bancroft, 148. 
p Me Master, 

History of the United States^/ Vol. I, 277. 

3 Madison to Jefferson, March 16, 1784, I, 74; History of the 
United States Constitution, Bancroft, 151; History of the United 
States, McMaster, Vol. I, 277. 

4 The Biographical Story of the Constitution, Elliott, 107. 

5 History of the United States Constitution, Bancroft, 173; 

Journals of House of Delegates, June 38, 1784. 




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- 79 - 


Oii Mardh 28, 1785, the joint Commission met at Mount Vernon, 
and after a full discussion of all matters relating to navigation 
on Chesapeake Bay and the rivers which were common to both States, 
amicably adjusted all conflicting claims and agreed upon certain 
regulations.^ Among the matters included in the compact were 
provisions for the establishment of lighthouses and buoys and 
stipulations made by each of the parties respecting the "commer¬ 
cial regulations of the other, and for the navigation of their 
several waters by the vessels of the other!! 2 As the discussion 
proceeded, the Commissioners felt the need of enlarged powers to 
deal with many important commercial matters of iiiterest to the 
two States. The object of their meeting being fulfilled, they 
took up matters of general policy and recommended to the two states 
uniformity in commercial regulations, duties on imports and 
currency,^ 

The Annapolis Convention . 


When the results of the Commission's deliberations were laid 
before the Virginia Assembly, Washington was consulted. He urged 
that unless the States were willing to delegate power to Congress 
for the regulation of commerce, the dissolution of the Union was 
imminent. 4 In November 1786, the Maryland Legislature extended 


1 History of the United States Constitution, Bancroft, 349; Con¬ 
stitution of the United States, Tucker, Vol. II, Paragraph 351; 
Story on the Constitution, Vol. I, Paragraph 373. 

^ Constitution of the United States, Tucker, Vol II,Paragraph 351* 

3 Life of Mddison, Rives, I., 548, II, 57; 58. Story on the Con¬ 
stitution, Vol. 1, Paragraph 273. Journal of the Federal Con¬ 
vention, Madison, Edited by Scott, 36. 

4 Washington to Stuart, November 30, 1785; 

"If the states individually attempt to regulate commerce, an 
abortion or a many-headed monster would be the issue. If we 
consider ourselves or wish to be considered by others as a 
united people, why not adopt the measures which are character¬ 
istic of it, and support the honor and dignity of one? If we 
are afraid to trust one another under qualified powers, there 
is an end of the Union." History of the United States Consti¬ 
tution, Bancroft, 251. 




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- 80 - 


the recommendations of the Mount Vernon Commission by proposing 
that Delaware and Pennsylvania be invited to join Maryland and 
Virginia in formulating a common system of commercial policy . 1 

Madison was the leading figure in the movement which led to 
the Constitutional Convention, His suggestion had brought the 
kount vernon Convention into being. With keen appreciation of 
the necessity of investing the Federal government with adequate 
powers, he saw in the action of the Maryland legislature an op- 
portur.ity of transforming a meeting of local significance into 
a convention of national scope. Accordingly, he prepared a re¬ 
solution to be laid before the Virginia Legislature calling upon 
all the States to send Commissioners to the proposed trade con¬ 
vention. 2 

Madison was at once an able statesman and a clever politician 
Realising that if he presented the resolution to the Virginia 
Legislature, his activity in advocating the extension of federal 
power would align the opponents of that doctrine solidly against 
it, he secured the services of Mr. Tyler, an ardent advocate of 
States' rights for that purpose. On January 31, 1786, resolutions 
were passed by the Virginia Legislature, calling for a convention 
of delegates from all the states, "to take into consideration the 
trade of the United States, to examine the relative situation and 
trade of the said States, to consider how far a uniform system in 
their commercial regulations may be necessary to their interest . 
and permanent harmony, and to report to the several States such an 
act relative to this great object as, when unanimously ratified 
by them, will enable the United States in Congress effectually to 
provide for the same."^ Commissioners to the proposed-convention 

^Journal of the Federal Convention, .Madison,Edited by Scott, 36. 
2 Gibbons v. Ogden 9 wheat, 1, 325. 

3£lliott, Debates on the Federal Constitution, I, 115-119; 

Gibbons*.Ogden, 9 wheat 1, 225 Journal of the federal Convention, 
Madison, Edited by Scott, 38. 








- 81 - 


were appointed by Virginia, and the Governor of that State for¬ 
warded the resolutions to each State, together with an invitation 
to them to appoint Commissioners. 

Following the leadership of Virginia, Commissioners were 
authorized by Delaware > Pennsylvania* New Jersey* New York* New 
Hampshire, Massachusetts, North Carolina and Rhode Island. 1 
Annapolis was selected as the meeting place, owing to tts remote¬ 
ness from the influences of Congress and the centers of trade.2 
The day selected for the meeting was the second Monday of Sept¬ 
ember, 1786. 3 

Upon three occasions, Charles Pinckney of South Carolina 
urged upon the Congress of 1786 the necessity for a constitutional 
convention. On May 3 of that year he outlined the defects of the 
Articles of Confederation as being, (1) Lack of power to regulate 
commerce, ( 3 ) Lack of power for raising troops, (3) Lack of au¬ 
thority for the execution of powers granted. Failing in his 
efforts to secure an affirmative vote for such a convention, he 
obtained the appointment of a committee which suggested amend¬ 
ments to the Articles of Confederation. 4 

At the time of the Annapolis Convention the union was in an 
extremely precarious condition. The issuance of paper money by 
the States had practically destroyed credit. Shay*s rebellion 
was in progress and Congress appeared unable to quell it. The 
question of the navigation of the Mississippi River had created 
bitter dissension among the States. Spain had declined to enter 
into a Commercial treaty, because the United States insisted that 
the right of its vessels to navigate the lower Mississippi should 
be recognized. Whiie the northern commercial States were not con— 

iJournal of the Federal Convention, Madison,Edited by Scott.37. 
3History of the United States Constitution, Bancroft, 253. 

^Journal of the Federal Convention, Madison, Edited by Scott,37. 
^History of the United States Constitution, Bancroft, 251, 260. 






- 83 - 


cerned with the navigation of the Mississippi, they were deeply 
interested in securing treaty relations with European Nations. 
They urged in no Uncertain terms that the stumbling block to the 
negotiations with Spain be eliminated. The Southern States, on 

other hand, while not so deeply impressed with the necessity 
of the Spanish treaty as their northern neighbors, were strongly 
insistent upon the opening of the lower courses of the Mississippi 
navigation by vessels of the United States, for the purpose of 

providing an outlet for their back country in the Mississippi 
Valley 

On September 11, 1786, the Commissioners of Virginia, Dela¬ 
ware, Pennsylvania, New Jersey, and New York assembled at AnnaPb- 
liS * Commissioners were not appointed by Maryland, Connecticut, 
South Carolina and Georgia, and those authorized by Massachusetts, 
New Hampshire, Rhode Island and North Carolina did not attend#2 

Eight of the States which appointed Commissioners to the 
convention, had, in conformity with the resolution of Virginia, 
confined their authority to the consideration of matters relating 
to trade and commerce. New Jersey had, however, enlarged the 
powers of its commissioners, to include, in addition to commercial 
regulations, the consideration of how far other important matters 
might be necessary to the common interest and perfect harmony of 
the several States; and had empowered them to report such an act 
on the subject, as when ratified by the States, "would enable the 
United States in Congress assembled effectually to provide for 
the exigencies of the Union,"3 These instructions authorized 
the Commissioners of New Jersey to discuss all of the defects of 
the existing form of the Federal government, under the Articles 

1 The Biographical Story of the Constitution, Elliott, 8. 

3 Journal of the Federal Convention, Madison, Edited by Scott, 

39. Political and Civil History of the United States, Pitkin, 
Vol. II, 218. 

3 Journal of the Federal Convention, Madison, Edited by Scott, 38, 



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- 83 - 


Confederation, and to propose legislation intended to remedy 
them. 

Hamilton, always an earnest and able advocate of strong cen¬ 
tral government conceived the time to be propitious for an appeal 
to revise the defunct Articles of Confederation, so as to render 
them equal to the exigencies of the Union. He provided a draft 
of a report to be laid before Congress and the States. The con¬ 
vention, after spending two days in debating and amending the pro¬ 
posed report, adopted it and adjourned. 

The report stated, at the outset, that in view of the small 
number of states represented, the members of the convention deemed 
it inadvisable to proceed to a full determination of the matters 
concerning which they had been authorized to act. In this report, 
they set out certain convictions of the members present concerning 
the objects for which they had met. They approved the New Jersey 
idea of extending the powers of Commissioners to objects other 
than commerce, and suggested that it deserved incorporation into 
the plan of a future convention. They intimated that the compre¬ 
hensive character of the power of regulating commerce, and its 
attendant affect upon the general system of the Federal government, 
might require an adjustment of other parts of the Federal system. 
Finally, they recommended a convention of deputies from all the 
States "to meet at Philadelphia on the second Monday of the next 
May to take into consideration the situation of the United States; 
to devise such further provisions as shall appear to them necessary 
to render the constitution of the Federal government adequate to 
the exigencies of the Union; and to report such an act for that 
purpose to the United States in Congress assembled, as, when 
agreed to by them, and afterwards confirmed by the legislature 

of every State, will effectually provide for the same". 1 

1 ’ - Stofy""on - the "Const it ut ion, Vof. I, Paragraph 373; History of "the 
United States Constitution, Bancroft, 260; Elliott, Debates, I, 
117-130; The Biographical Story of the Constitution, Elliott, ,9. 




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Upon the receipt of this report, the Virginia legislature 
took prompt action* On November 3, 1786, a committee was ap¬ 
pointed to prepare a suitable bill.* i n four days the committee 
reported. 2 Two days later, the bill was passed, concurring with 
the recommendations of the Annapolis Convention, with one varia¬ 
tion, that the new Federal constitution, after being agreed to by 
Congress, was to be ratified, not by the legislatures of the 
states, but by the States themselves, thus paving the way for 
special conventions of the several States. A copy of the bill 
was transmitted to Congress and to each executive of the States, 
requesting their acquiescence * 3 on December 4, 1786 the Com¬ 
missioners of Virginia, seven in number, were chosen, with Wash¬ 
ington at their head. New Jersey took similar action on November 
23, 1786. Before Congress had acted, six States, Virginia, New 

1 Journala, Virginia House of Delegates, November 3, 1786. 

3 Hournals, Virginia House of Delegates, November 7, 1786. 

3 History of the United States Constitution, Bancroft, 260: 

Madison I, 259; Story on the Constitution, Vol, 1, Paragraph 
373, Preamble to act of the Virginia Legislature: 

•’Whereas the General Assembly of this Commonwealth, taking 
into view the actual situation of the Confederacy, as well 
as reflecting on the alarming representations made, from 
time to time, by the United States in Congress, particular¬ 
ly in their act of the 15th day of February last, can no 
longer doubt that the crisis is arrived at which the good 
people of America are to decide the solemn question whether 
they will, by wise and magnanimous efforts, reap the just 
fruits of that independence which they have so gloriously 
acquired, and of that Union which they have cemented with 
so much of their common blood; or whether, by giving way 
to mutual jealousies and prejudices, or to partial and tran¬ 
sitory interests, they will renounce the auspicious bless- „ 
ings prepared for them by the Revolution, and furnish to its 
enemies an eventual triumph over those by whose virtue and 
valor it has been accomplished: and whereas thq same noble 
and extended policy, and the same fraternal and affectionate 
sentiments which originally determined the citizens of this 
Commonwealth to- unite with their brethren of the other States 
in establishing a federal government, cannot biit be felt with 
equal force now, as motives to lay aside every inferior con¬ 
sideration and to concur in such further concessions and pro¬ 
visions as may be necessary to secure the great object for 
which that government was established, and te render the 
United States as happy in peace as they have been glorious 
in war. ” 





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- 85 - 


Jersey, Pennsylvania, North Carolina, Delaware and Georgia had 
enacted suitable legislation and appointed delegates,^ 

The Calling of the Constitutional Convention , 

In February, 1787, a committee of Congress reported, by a 
bare majority of one that, entirely coinciding with the proceed¬ 
ings of the Annapolis Convention, they strongly recommended to 
the different legislatures the appointment of delegates to meet 
in the proposed convention at Philadelphia. No action was 
taken on this report. On February 21, 1787, King of Massachu¬ 
setts, moved and Congress adopted a resolution, that a convention 
be hald at Philadelphia on the second Monday in May ensuing, 

'for the purpose of revising the Articles of Confederation, and 
reporting to Congress and the several legislatures such alter¬ 
ations and provisions therein, as shall, when agreed to in Con¬ 
gress and confirmed by the states, render the federal constitu¬ 
tion adequate to the exigencies of government and the preserva¬ 
tion of the Union. "2 While this measure purposely omitted any 
reference to the Annapolis Convention it was identical in point 
of time, place and substance with the recommendations of that 
body. 

In this manner the States proceeded, step by step, to the 

threshold of the Constitutional Convention. While the battle 

for Constitutional government in fact as well as theory was not 

yet won, the most important movement since the Revolution had been 

initiated. The Congress without apparent opposition, had gone 

on record as favoring the extension of Federal powers. More 

than half of the States were unalterably committed to this 

view. Public opinion had crystallized in the thought that the 

1 History of the United States, McMaster, Vol, I, 391. 

3 12 Journals of Congress, 12, 13, 14; Story on the Constitution, 
Vol. I, Paragraph 274; History of the United States, McMaster 
391, 392; Constitutional History of the United States, Thojope, 
Vol. I, 285. 




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contemplated changes in government were timely and desirable. 
There remained merely the marshalling of the details. 


V 0 

THE CONSTITUTION. 

Meeting of Th e ConstAtutional Convention 

Monday May 14, 1787 was the day set for the Constitutional 
Convention. The delegates of Virginia and Pennsylvania were the 
first to arrive at Philadelphia. A quorum of seven States was 
not convened until May 35, On May 38, with representatives pres¬ 
ent from nine States, a pledge of secrecy was imposed on each 
member. Eventually, delegates from twelve States were instru¬ 
mental in the adoption of the Constitution, Rhode Island alone de¬ 
clining to appoint delegates . 1 

The idea of a constitutional convention was not new. It had 
been speculated upon many times by discerning persons who realized 
the inadequacy of the powers of Congress. In May 1781 this solu¬ 
tion of the problem of Union had been ^advocated in a Pamphlet by 
Pelatiah Webster. In 1783, the New York legislature had passed a 
resolution suggesting that, in order to rectify the defects in the 
Articles of Confederation, it would be proper for Congress to 
recommend a general convention to the States. On April 1, 1783, 
Hamilton had given notice to Congress that he intended submitting 
a plan for a general convention of the States, to strengthen the 
form of the Federal government. In the following year, Noah Web¬ 
ster suggested "a new system of government, which should act, not 
on the States, but directly on individuals, and vest in Congress 

1 History of the United States, McMaster, Vol. I,; Journal of the 
Federal Convention, Madison, Edited by Scott, 45: "Well known to 
have been swayed by an obdurate adherence to an advantage which 
her position gave her, of taxing her neighbors through their con¬ 
sumption of imported supplies, an advantage it was foreseen would 
be taken from her by a revision of the Articles of Confederation? 






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- 87 - 


full power to carry its laws into effect." In 1786, Pinckney of 
South Carolina had urged Congress in vain to recommend a con¬ 
stitutional convention to the States.1 

Many of the proposed plans for correcting the defects of 
the Federal government contemplated that this should b e done 
by amending the Articles of Confederation. But the convention 
tfhich assembled at Philadelphia had authority to revise the 
entire government of the Union. 

On May 39, 1787, the convention was opened f or the consider¬ 
ation of the matters which had brought it into existence. Edmund 
Randolph of Virginia, in delivering the opening address enumer¬ 
ated the defects of the Articles of Confederation, and urged 
that the Union should be made paramount to the States. 

Plans of Government Proposed . 

DiS-rir^C,T~ 

Three plans were proposed in the convention, to 

serve as a basis for cthe new f orm of Federal government. The 
Virginia plan, nhich, eventually, was adopted by the convention, 
was introduced by Edmund Randolph, on behalf of the Virginia 
delegation. It provided for a national government, with strongly 
centralized powers, comprising three branches, the Legislative 
Executive and Judicial.2 

The sixth resolution of Randolph, provided "that the 
National legislature ought to be empowered to enjoy the legis¬ 
lative right vested in Congress by the Confederation; and more¬ 
over, to legislate in all c ases to which the 'separate States • 
are incompetent, or in which the harmory of the United States 
maybe interrupted by the exercise of individual legislation." 3 

The New Jersey plan, which represented the ideas of the 

1 Journal of the Federal Convention, Madison, Edited by Scott, 

43 44 45. 

3 Constitutional History of the United States Constitution,Thorpe, 
Vol. I, 314, 315. 

3 Elliott's Debates, Vol. I, 144; Journal of the Federal Con¬ 
vention, Madison, Edited by Scott, 62. 






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- 88 - 


delegates from New Jersey, New York, Delaware and Connecticut, 
was introduced by Mr. Patterson of New Jersey. These delegates 
opposed a departure from the principles of the Articles of Con¬ 
federation, which their plan sought to remedy by amendment. This 
was because the advocates of the new Federal government proposed 
that representation in Congress should be established on a pro¬ 
portional basis. One of the amendments proposed that "The United 
States in Congress, * * be authorized to pass acts for raising a 
revenue, by levying a duty or duties on all goods or merchandises 
of foreign growth or manufacture, imported into any part of the 
United States; * * * to pass acts for the regulation of trade 
and commerce, as well with foreign nations as with each other'A 
The South Carolina plan, by Charles Pinckney of that state, was 
referred to the Committee of the whole, but thereafter no entry 
concerning it was made in the minutes of the convention.^ In 
Article VI, this plan provided that "The legislature of the 
United States shall have the power to lay and collect taxes,duties, 
imposts and excises, to regulate commerce with all nations and 
among the several States; , all laws regulating commerce shall re¬ 
quire the assent of two-thirds of the members present in each 
house V® 

All three plans provided for the regulation of commerce by 

Congress. In the Virginia and New Jersey Plans the taxing power 

and the commerce clause were kept distinct. In the South (Sarolin^ 

plan, Congress was given the power to regulate commerce with all 

nations and among the several States, but a vote of two-thirds of 

the members Present in each house was necessary in order to Pass 

^ The Debates in the Federal Convention of 1787, Madison, Edited 
by Hunt and Scott, 102. 

2 History of the United States, McMaster, Vol. I, 439. 

3 Madison Papers, 747; Constitution of the United States, Tucker, 
Vol. II, Paragraph 252; The origin and Growth of the American 
Constitution, Taylor, 415; Elliott’s Debates, Vol. I, 148. 



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-89- 


laws in pursuance thereof. On the other hand, laws imposing 
duties required only a majority vote! 

Deliberat ions of the Convention Concerning the 

Regulation of Sommerce. 

In the draft provided for the use of the Committee on Detail, 
Madison included among the legislative powers, "To regulate 
commerce." Rutledge added "both foreign and domestic", and later 
inserted in the margin "Indian Affairs." 1 * On August 6, 1787 the 
Committee on detail reported a draft of the Constitution. Two of 
the clauses reported read as follows: 

"The legislature of the United States 
shall have power to lay and collect taxes, 
duties, inposts and excises;" 

"To regulate commerce with foreign 
nations and among the several states.",2 

The first clause relating to the taxing power was continued 
in the final draft of the Constitution, "The Congress!! being 
substituted for "The legislature of the United States", ft was 
not, however, retained with the Commerce Clause, the power to 
borrow money on the credit of the United States being interposed 
between them, 3 4 On August 31, the convention agreed to insert in 
another part of the constitution "and all duties, imposts and 
excises laid by the Legislature, shall be uniform throughout the 
United States’.’^ On September 11, the Committee of eleven reported 
the full wording of the clause delegating the taxing power, as 
follows: 

"The Legislature shall have power to lay and collect taxes, 
duties, imposts and excises, to pay the debts and provide for the 

1 Origin and Growth of the American Constitution, Taylor, 415, 

3 Journal of the Federal Convention, Madison, Edited by Scott,453, 

3 Constitution of the United States, Articles 1, Section 8, 

4 journal of the Federal Convention, Madison, Edited by Scott,647. 






Vf 


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-90- 


cormr.on defence and general welfare of the United States". 1 On 
September 13, the Committee on Style reported this clause as 
above, except that "The Congress" supplanted "The Legislature".S 
On September 14, the words "but all duties, imposts and excises 
shall be uniform throughout the United States," were annexed to 
it by unaminous vote.3 

On August 16, the clause "to regulate commerce with foreign 
nations and among the several States"was agreed to, without dis¬ 
cussion. 4 On August 18, Madison submitted certain additional 
powers to the Committee on Detail, for incorporation in the draft 
of the Constitution, including the power of the general legisla¬ 
ture "To regulate affairs with the Indians, as well within as 
without the limits of the United States". 5 On August 32, the 
Committee reported, proposing to add to the Commerce Clause, as 
previously approved, "and with the Indiana^ within the limits of 
any State, not subject to the laws thereof." 8 On September 4, 
the Committee of Eleven reported and proposed to insert instead 
"and with the Indian tribes", after the Commerce Clause, as pre¬ 
viously adopted. This was agreed to without discussion.? On 
September 13, 1787 ,the Committee on Style reported the Commerce 
Clause in the form in which it now exists in the Constitution. 8 

As Congress was invested with the exclusive power of regu¬ 
lating interstate and foreign commerce a difference arose between 
the Northern Navigating States and the Southern Non-navigating 
States, respecting the exercise of this power. The Southern States 

1 Journal of the Federal Convention, Madison, Edited by Scott, 654 

2 Journal of the Federal Convention, Madison, Edited by Scott, 699 

3 Journal of the Federal Convention, Madison, Edited by Scott, 734 

4 journal of the Federal Convention, Madison, Edited by Scott, 541 

Journal of the Federal Convention, Madison, Edited by Scott, 549 

8 Journal of the Federal Convention, Madison, Edited by Scott, 585 

Journal of the Federal Convention, Madison, Edited by Scott, 654 

8 Journal of the Federal Convention, Madison, Edited by Scott, 704 



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feared that the Northern Commercial States, with a majority in 
the national legislature, would regulate commerce to protect their 
own interests, without reference to the effect of such regulations 
on their southern neighbors. The Southern States owhed few ships, 
but were interested in having their Products transported cheaply, 
irrespective of the nationality of the vessels. The shipping 
interests of the Northern States required the protection of a 
navigation act, which had been one of the principal inducements 
to their efforts toward strengthening the federal government. 

These sections were also divided on the question of the slave 
trade. The Northern States had few slaves. The Southern States 
needed slaves, and the slave trade flourished in North Carolina, 
South Carolina and Georgia. The first great compromise of the 
Convention, the ..inclusion of slaves in estimating population as 
a basis of representation in the government, placed the Northern 
States, where slaves were few, at a disadvantage. Hence, they 
sought to prohibit or restrict the importation of slaves as a 
means of preserving their strength in the Union. 

On August 24, the Committee of Eleven reported, recommending 
that the section of the proposed Constitution, requiring a vote 
of two-thirds of the members present in each house of Congress 
to pass a navigation act should be stricken out; and that the 
section respecting the importation of slaves, should be amended 
so as to prevent the prohibition of the slave trade until 1800, 
and to permit duties on their importation "at a rate not exceed¬ 
ing the average of the duties laid on imports". 1 

On the following day, the Convention, upon motion of Mr. 
Pinckney of South Carolina, extended the period for the importa¬ 
tion of slaves to 1808, and restricted the duty to ten dollars 
per person.^ Consideration of tiie section relating to the_ 

1 Journal of the federal Convention, Madison, Edited by Scott, 598 

2 Journal of the Federal Convention, Madison, Edited by Scott, bub 

609, 610. 



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- 93 - 


passage of a navigation act was postponed. On August 39, this 
section being taken up, Pinckney of South Carolina moved "That 
no act of the Legislature for the purpose of regulating the 
commerce of the United States with foreign powers, among the 
several States shall be passed without the assent of two-thirds 
of the members of each house. As the motion was not before 
the Convention, a vote was taken to postpone the matter under 
consideration, to make way for it. By this time the views 
of the North and South had been reconciled in the second great 
compromise of the Convention. The Northern States had agreed 
that the migration or importation of slaves should not be pro¬ 
hibited by Congress prior to 1808, and that no tax on such 
importation should be laid in excess of ten dollars per head. 

In return, the Southern States discontinued their opposition to 
the passage of a navigation act. Pinckney, ift debase on his 
motion, urged that "considering the loss brought on the commerce 
of the Eastern states by the Revolution, their liberal conduct 
towards the views of South Carolina,2 and the interest the weak 
Southern states had in being united with the strong Eastern. S' .'te¬ 
states* he thought it proper that no fetters should be imposed 
on the power of making commercial regulations",^ On the question 
to postpone, the vote was 7 to 4 against. South Carolina voting 
with the majority. The report of the Committee was then agreed 
to by the convention. 

The States were not, however, willing to permit full 
unqualified power over commerce to remain in the hands of Congress 
They apprehended that some group of States, constituting a major¬ 
ity, might pass regulations which would be inimical to the minor- 

1 Journal of the jpederal Convention, Madison, Edited by Scott,62( 

2 i. e. the permission to import slaves. 

3 Journal of the Federal Convention, Madison, Edited by Scott,62 

♦ 



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- 93 - 


ity. On August 6, 1787, the Committee on Dietail had included 
in its draft of the Constitution, the following clause: "No tax 
or duty shall be laid by the Legislature on articles exported 
from any State** On August 31, this clause was agfeed to.2 
On August 38, Mr. Sherman, reporting on behalf of a committee 
of which he was a member, recommended that the following should 
be added to the clause prohibiting the National Legislature from 
taxing exports: 

"Nor shall any regulation of commerce or revenue give 
preference to the ports of one State over those of another, or 
oblige vessels bound to or from any state to enter, clear or 
pay duties in another. And all tonnage, duties, imposts, and 
excises laid by the Legislature, shall be uniform throughout 
the United States”. 3 On August 31, these two provisions/con¬ 
sidered and agreed to. 4 On September 14, the first provision 
was amended to read "No preferance shall be given, by any regu¬ 
lation of commerce or revenue, to the ports of one State over 
those of another: nor shall vessels bound to, or from, one State, 
be obliged to enter, clear, or pay duties in another”, in which 
form it now appears as a clause of the Constitution. 5 As has 
been previously mentioned, the second provision was annexed to 
the clause by which the power of taxation was conferred upon 
Congress® 

A paragraph had been reported by the Committee on Detail 

forbidding the imposition of duties on imports by the States, 

without the consent of the Legislature of the United States. 7 

On August 38, this prohibition was extended to exports also. 

There was also added to the provision the words "nor with such 

1 Journal of the Federal Convention, Madison, Edited,by Scott 455 
3 Journal of the Federal Convention, Madison, Edited by Scott 577 

3 Journal of the Federal Convention, Madison, Edited by Scott 618 

4 Journal of the Federal Convention, Madison, Edited by Scott 647, 

5 Journal of the Federal Convention, Madis.on, Edited by Scott 738, 

6 Journal of the Federal Convention, Madison, Edited by Scott 724. 

7 Journal of the Federal Convention, Madison, Edited by Scott 

449, 459. 



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- 94 - 


consent , but for the use of the United States”. 1 On September 
12 the report of the Committee on Style proposed that the por¬ 
tion of Section 10 of the Constitution dealing with the power 
of the states to lay duties should be adopted in the following 
form: 

*No state shall, without the consent of Congress, lay 
imposts or duties on imports or exports; or with such consent, 
but to the use of the treasury of the.United States".2 This 
clause being reconsidered, it was contended by Mason of Vir¬ 
ginia that the restrictions would prevent the incidental duties 
necessary for the inspection arid Safe keeping of produce intended 
for export. Accordingly he moved that the section be supplemen¬ 
ted by the following^ "Provided, nothing herein contained shall 
be construed to restrain any State from laying duties upon ex- , 
ports for the sole purpose of defraying the charges of inspect¬ 
ing, packing, storing and indemnifying the losses in keeping the 
commodities in the cafe of public officers, before exportation. 

Doubts being expressed as to the ability of Congress to 
police this provision so as to prevent certain States from lay¬ 
ing excessive duties on the exports made by their neighbors 
through their ports, under the guise of inspection duties, Mr. 
Mason met the objection on the following day, by substituting 
a motion providing "That no State shall be restrained from im¬ 
posing the usual duties on produce exported from such State, lor 
the sole purpose of defraying the charges of inspecting, pack 
ing, storing and indemnifying the losses on such produce, whi 
in the custody of public officers; but all such regulations shall. 

in case of abuse, be subject to the revision^d^control^of Jon-_ 

1 Journal of the Federal Convention, Mddison, Edited by Scott, 

gop 623 . 

3 journal’of the Federal Convention, Madison, Edited by Scott, 

3 Journal'of°the Federal Convention, Madison, Edited by Scott, 

717, 718. 








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- 95 - 


gress," which w a s agreed to.l On September 15, in consequence 
of the proviso agreed to on September 13, the second clause of 
Article I, Section 10, w a s adopted in the following form, in 
which it now appeals in the Constitution: 

"No State shall, without the consent of Congress, lay any 
imposts or duties on imports or exports, except what ray be 
absolutely necessary for exdcuting its inspection laws; and the 
net produce of all duties and imposts, laid by any State on im¬ 
ports or exports shall be for the use of the Treasury of the 
United States; and all such laws shall be subject to the revision 
and control of the Congress'.'2 

On September 15, the third clause of Section 10 of Article 
I being discussed, Messrs. McHenry and Carroll moved that it be 
supplemented by the provision that "No State shall be restrained 
from laying duties of tonnage for the purpose of clearing har¬ 
bors and erecting 1 ight-houses i' 2 in debate the view w a s ex¬ 
pressed by Madison that "whether or not the states are now re¬ 
strained from laying tonnage duties, depends on the extent of the 
power 1 to regulate commerce! These terms are vague, but seem to 
exclude this power by the States". He was convinced that the 
regulation of commerce "was in its nature indivisible, and ought 
to be wholly under one authority.The majority felt that the 
regulation of tonnage w a s an essential part of the regulation of 
trade, with which the States "ought to have nothing to do." 
Accordingly it was moved and passed that the clause should be 
supplemented by the provision that "No State shall, without the 
consent of Congress, lay any duty of tonnage." 

On the same day, a final attempt was made to restrict the 
power of Congress to pass navigation acts. Mr. Mason of Virginia 

1 Journal of the Federal Convention, Madison, Edited by Scott, 

719 730. 

2 Journal of the Federal Convention, Madison, Edited by Scott,732 

3 Journal of the Federal Convention, Madison, Edited by Scott,733 







-96- 


expressing "his discontent at the power given to Congress, by a 
bare majority to pass navigation acts, which * * * would not 
only enhance the freight, * * * but would enable a few rich 
merchants in Philadelphia, New York and Boston, to monopolize 
the staples of the Southern States' and depreciate their value 
perhaps fifty per cent," moved a further proviso, "that no law 
in the nature of a navigation act be passed before the year 1808, 
without the consent of two-thirds of each branch of the Legis¬ 
lature," which passed in the negative*^ 

Adoption and R atification of the Constitution, . 

On September 17, 1787, the engrossed Constitution was read 
and adopted in its present form. In submitting it to Congress, 
the delegates of the Convention recommended "that it should after¬ 
wards be submitted to a convention of delegates chosen in each 
State by the people thereof, under a recommendation of its legis¬ 
lature for their assent and ratification";2 and that each con¬ 
vention ratifying it should give due notice of their action to 
Congress, By a further resolution, the Convention asserted that 
when nine States had ratified the Constitution, Congress should 
appoint a day on which electors should meet and vote for the 
President and time and place of commencing the business of govern' 
ment under the Constitution. 3 

On September 28, 1787, Congress having received the report 
of the Constitutional Convention, unanimously resolved "that the 
said report, with the resolutions and letter accompanying the 
same, be transmitted to the several legislatures in order to be 

1Journal of the Federal Convention, Malison, Edited by Scott 739, 

2 5 Karshall’s Life of Washington, 128, 129; Journals of Congress 
XII, 109; Political and Civil History of the United stateSjBtMn, 
II, 224, 264. 

3 Story on the Constitution, Vol. I, Paragraph 275. 




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- 97 - 


submitted to a convention of delegates chosen in each State by 
the people thereof, in conformity to the resolves of the con¬ 
vention, made and provided in that caseyl 

Conventions were called by the legislatures of the twelve 
States which had been represented in the Constitutional Conven¬ 
tion. All of these states excdpt North Carolina having ratified, 
on March 4, 1789 Congress assembled and commenced proceedings 
under the Constitution. North Carolina ratified the Constitution 
in November 1789; and in May 1790, Rhode Island assented to the 
Constitutional Union. 

The Congress of 1789 laid duties on imports, ^s well as a 
tonnage duty. Goods imported in vessels belonging to citizens 
of the United States paid ten per cent less duty than when 
brought in bottoms owned by foreigners. In addition, higher 
tonnage duties were exacted from foreign than from American 
vessels. These discriminations were intended to encourage 
American shipping and to countervail the Commercial restrictions 
of foreign nations, 2 

Conclusion . • 

The necessity for regulating commerce gave the immediate 
impulse to the establishment of a more perfect union. While the 
Articles of Confederation were fundamentally defective, union', 
in the sense of a loose alliance might have been maintained in¬ 
definitely by the States, if Congress had been granted the 
power to regulate commerce among the states and with foreign 
nations. None of the evils proceeding from the weakness of 
the central government under the Confederation contributed more 
to the course of events, which step by step, brought the present 
form of government into existence, than ^^ener^onvictiwi^^ 

1 journals of Congress, XII, 99, 110« 

3 Political and Civil History of the United States, Pitkin, Vol. 

II, 335. 




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that Connerce should be regulated by Corgress. 1 

In fact, the view that our present form of government had its 
immediate origin in the necessities of commerce is supported by 
most excellent authority.^ 

The degraded state of American foreign commerce during the 
period of the Confederation was the prime incentive to the Con- 


1 

Journal of the Federal Convention, Madison, Edited by Scott 33; 
The Federalist, XXII; Brown v. Maryland, 12 Wheat 419, 445; 

Cook v. Pennsylvania, 97 U. S. 566, 574; Northern Securities 
Co. v. United States, 193 U* S. 197, 352; Interstate Commerce 
Commission v. Brimson, 154 U. S. 447, 470; Wabash Railway Co,, 
v. Illinois, 118 U* 557, 572; Robbins v. Shelby Taxing Dis¬ 
trict, 120 U. S. 489, 498. 

2 Witherspoon’s Motion, Gibbons v. Ogden, 9 wheat 1, 225; Webster's 
Argument in Gibbons v. Ogden, 9 wheat, 1,11- 
n Few things were better known, than the*immediate causes 
which led to the adoption of the present constitution; and 
he thought nothing clearer, than that the prevailing motive 
was to regulate commerce ." 

Ibid, 12, 13: 

"Over whatever other ihterests of the country this government 
may diffuse its benefits, and its blessings, it will always 
be true, as matter of historical fact, that it had its immed¬ 
iate origin in the necessities of commerce; and, for its im¬ 
mediate object, the relief of those necessities, by removing 
their causes, and by establishing a uniform and steady system!? 
** * * it an y one wou ici look to the proceedings of several 
of the States, especially to those of Massachusetts and New 
York, he would see, very plainly, by the recorded lists of 
votes, that wherever this commercial necessity was most 
strongly felt, there the proposed new constitution had most 
friends." 

Life of Webster, Curtis, I, 103: 

"Maritime defence, commercial regulation, and national revenue 
were laid at the foundation of the national compact. 

They are its leading principles, and the cause of its 
existence. They were primary considerations, not only with 
the convention which framed the Constitution, but also with 
the people when they adopted it. They were the objects, and 
the only important objects, to which the states were confessed¬ 
ly incompetent. To effect these by the means of a national 
government was the constant, the prevalent, the exhaustless 
topic of those who favored the adoption of the Constitutions 
Origin and Growth of the American Constitution, Taylor, 25: 

"Just as the influence of commerce set in motion the forces 
that finally brought about the unity of law in Germany, so 
the influence of commerce set in motion the forces that 
finally compelled the intervention of the existing Constitu¬ 
tion of the United States." 








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-99- 


stitutional Movement, ^ 

If the States had granted Congress the power to lay duties 
adequate to meet the necessities of government and to counter¬ 
vail British restrictions, perhaps the Confederation would have 

f 

survived, 2 

Of this power, the improper exercise of which contributed 
to the Revolution and resulted eventually in that great defini- 
tiverdocument calculated to preserve the liberties of the whole 
people. Justice Story says: 

"It ia a power vital to the prosperity of the union; and 
without it the government would scarcely deserve the name of a 
national government and would soon sink into discredit and im¬ 
becility, It would stand as a mere shadow of sovereignty, to 
mock our hopes, and involve us in a common ruin.” 3 


, Speech of John Randolph on Internal Improvements, 

Garland's Life of Randolph, II, 305: 

"This government grew odt of the necessity, indespensible 
and unavoidable, in the circumstances of this country,of 
some general power, capable of regulating foreign commerce." 

"The proximate as well as the remote cause of the 
existence of the Federal government was the regulation of 
foreign commerce." 

2 

Ibid. 

"If the old Congress had possessed the power of laying a duty 
of ten per cent advalorem on imports, this Constitution would 
never have been called into existence." 

3 

Story on the Constitution, II, 2, 3. 



















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